What is smart home technology worth to a multifamily building?
The short answer
PropertyAlpha's benchmark puts a smart home package at about $246 of net operating income per unit per year, net of software. At a 5.5% Class A cap rate, that is about $4,500 of asset value per unit, or roughly $0.89 million across a 200-unit building. These are modeled national figures, not a guarantee for any one property.
Updated October 2026 · PropertyAlpha benchmarks (engine 2026.11-v3) · Figures are modeled
What the package includes
The benchmark covers a typical in-unit package: a smart lock, a hub, a smart thermostat and basic leak sensors. The hub and thermostat are valued inside the package rather than as separate lines, so nothing is counted twice.
Where the $246 comes from
- A resident technology fee for connected-home features.
- Fewer maintenance trips, because staff can check, lock and unlock remotely.
- Energy saved in vacant units, where the thermostat holds a setback between residents.
- Minus the monthly software cost. The figure is net, not gross.
Each input traces to graded public sources and industry surveys. PropertyAlpha publishes the method; the coefficient tables stay internal, governed and versioned.
Value by property class
| Property class | Cap rate | Asset value per unit |
|---|---|---|
| Class A | 5.5% | about $4,500 |
| Class B | 6.0% | about $4,100 |
| Class C | 7.0% | about $3,500 |
Same $246 of NOI per unit, capitalized at each class's cap rate. Modeled.
What changes the answer
- The fee residents will pay in your market. A building that charges no technology fee captures less of the value.
- Turnover, which drives how many vacant days the thermostat setback can save.
- Your software contract. A higher monthly cost comes straight out of NOI.
- Whether the package is installed today (counted at full run-rate) or planned (phased in as residents adopt it).
How confident is the number?
PropertyAlpha grades the smart home benchmark Medium. The inputs are well documented, but fees and adoption vary by market, which is why every report shows a range and replaces national inputs with your building's data when you have it.
What is it worth to your building?
The free Property Impact Report applies these benchmarks to your property, by class and unit count, and shows the method behind every number.
Run your Impact AnalysisSources
Related questions
Figures are modeled decision-support: not a guarantee, not an appraisal, not investment advice. Third-party figures are national context, not projections for any one property.