CalculateRealEstateROI

Multifamily

Property Class

Classification system (A, B, C, D) describing property quality, location, and tenant profile.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Not a formal rating — sponsors use it loosely. Class drives expected yield and risk.

Examples

  • A: new luxury; B: stable workforce; C: aging workforce; D: distressed.

Common mistakes

  • Comparing cap rates across classes without context.