Income properties on the South Shore in 2026: what the numbers say

I get the same question every week: is this a good time to buy an income property? The answer isn't in a headline. It's in three numbers: what your financing costs, what the building earns, and the gap between the two. In July 2026, those three numbers tell a clearer story than they did in 2023. Here's how I read it.

A stable rate, at last

On July 15, the Bank of Canada held its policy rate at 2.25%. That's a sixth straight hold, and the next decision doesn't come until September 2. For an investor, this stability is worth a lot. For two years, people bought buildings without knowing what refinancing would cost six months later. Today, a predictable rate means you can model a purchase for what it is, not for what it might become if rates took off again.

Commercial and multifamily mortgage rates aren't the same as residential ones, but they move in the same direction. Five-year financing that stays inside its range all summer gives you time to run your numbers without rushing.

The plex: what a building actually earns

The capitalization rate, or cap rate, is a building's net income divided by its price. It's the first number I look at. In 2026, a plex trades at around 4 to 5% cap in the sought-after central Montreal sectors, and closer to 5 to 6% in the suburbs and mid-sized cities. The South Shore falls in that second range, which works in the buyer's favour. You pay less per dollar of income than you would downtown.

Prices themselves remain high. The median plex price in the metropolitan area rose about 8% in a year according to the QPAREB, with half of all transactions closing above $865,000. In Longueuil, the 2026 reference points sit around $696,000 for a duplex, $905,000 for a triplex and a little over $1M for a quadruplex. Those are medians. Two triplexes on the same street can be $200,000 apart depending on unit condition and the leases in place.

The multiplier, a quick test

Before pulling out the full calculator, I use the gross revenue multiplier. Divide the price by the gross annual revenue. In 2026, in Montreal and on the South Shore, a building often trades at 12 to 14 times its gross revenue. Above 14, you need a good reason: rents clearly below market that you can bring up, a lot with strong potential, a sector in transformation. Below 12, be suspicious and find out why the price is so low. This tool doesn't replace a serious analysis, but in thirty seconds it weeds out the listings that don't hold up.

The commercial side: industrial is tightening

Beyond the plex, commercial brick is moving too. Greater Montreal's industrial market saw its vacancy rate slip to 5.4% in the first quarter of 2026, according to CBRE. That's the first decline since late 2021. Asking rents are still adjusting downward for a ninth quarter, and 2.8 million square feet are under construction, mostly in Laval and on the North Shore. For an investor, this is a market rebalancing: tenants still hold some negotiating power, but the window is closing.

Industrial cap rates sit around 5 to 6.5%. On the office side, the spread is wider: a class A downtown tower trades near 7.5%, a class B building closer to 8.5%, and suburban office above 9%. Those higher yields reflect higher risk. Office is still a bet on workers coming back, not a guaranteed income.

Financing has changed: read up on MLI Select before you build your plan

Many South Shore investors count on CMHC's MLI Select program to finance a multifamily purchase with a reduced down payment. The program still exists, but it tightened in 2026. The 50-point threshold is still the entry door, and you need 100 points to unlock a 50-year amortization. Except CMHC has added a surcharge based on length: each five-year slice of amortization beyond 25 years now costs an extra 0.25%, so a 50-year amortization adds 1.25% to the premium.

Another change that matters: rents now have to be backed by signed leases or a market appraisal before closing. No more projected rents during lease-up. If your structure relied on hypothetical rent increases, redo your numbers. In Quebec, the net income calculation also has to reflect the reality of rent control, with an increase of about 3.1% under the TAL's guideline rate for 2026, not market-rate growth.

What this means for you

• You're looking for a first income property: stable rates give you a solid base to calculate from. Aim for a cap rate of at least 5% on the South Shore and a multiplier under 14. Have the actual leases verified before you commit.
• You're refinancing or building with MLI Select: work the new surcharges and the signed-lease requirement into your first draft. A plan that held together in 2024 may not hold in 2026.
• You're looking at the commercial side: industrial offers a better risk-return trade-off than office right now. But the market is tightening, so the best opportunities won't sit around for long.

Every building has its own story of income, leases and potential. A median will never tell you whether one specific address is a good buy. If you're evaluating a plex or a commercial building on the South Shore, request an evaluation or write to me directly. I'll go through the numbers with you, line by line. You can also read my deeper analysis on investing in a plex on the South Shore.