Three-Unit Residential Income
For Sale
$1,350,000
32 Houston Avenue, Newport, RI 02840
Three-family home with an updated first-floor three-bedroom unit and two one-bedroom units, with two leases in place.
Property Size2,552 SF
Lot Size0.20 Acres
Price / SF$528
Days on Market60
Property Features for 32 Houston Avenue
General Information
Standard status
Active
Size
2,552 SF
Lot size
0.20 Acres
Property subtype
MultiFamily
Occupancy
67%
Additional Details
Business Included
Yes
Multifamily Units
3
Building Details
Year Built
1880
Stories
3
Tenancy
Multi
Listing Agency:
RE/MAX Results
(401) 848-7827
Listed By:
Tyler Bernadyn · License #REB.0019892
(401) 241-1851
Source:
Lockandkeyre
Added: Jul 8
Changed: Sep 4
Last Checked: Sep 5 at 5:56AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of RE/MAX Results
Investment Insights
Based on property information with market context.
This three-family residence at 32 Houston Avenue in Newport includes an updated first-floor unit with three bedrooms and in-unit laundry, plus two additional one-bedroom units on the second and third floors. Two of the three units are currently leased, providing immediate rental income while still allowing flexibility for future management decisions.
The property sits on an oversized 8,500+ square foot lot, and is located approximately six doors from King Park and near Newport Harbor. A short walk reaches Thames Street and downtown, with nearby access to dining, shops, beaches, NYYC, and Ida Lewis YC.
With the generous lot, the home offers practical off-street parking and room for outdoor improvements. The configuration supports a range of upkeep and future scenario planning consistent with maintaining the property as a multi-family investment.
The property sits on an oversized 8,500+ square foot lot, and is located approximately six doors from King Park and near Newport Harbor. A short walk reaches Thames Street and downtown, with nearby access to dining, shops, beaches, NYYC, and Ida Lewis YC.
With the generous lot, the home offers practical off-street parking and room for outdoor improvements. The configuration supports a range of upkeep and future scenario planning consistent with maintaining the property as a multi-family investment.
Key Highlights
- 1880‑built three‑family home in Newport’s Fifth Ward with an updated first‑floor 3‑bedroom unit and two 1‑bedroom units
- Oversized 8,500+ sq ft lot with ample off‑street parking and room for outdoor improvements
- Updated first‑floor unit includes in‑unit laundry
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$42,624
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.16%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$852,480
$852.5K
Cap Rate 7%
$608,914
$608.9K
Cap Rate 9%
$473,600
$473.6K
Market Conditions
NOI Build-Up for 2,552 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$65.2K $25.56/SF
− Vacancy
−$4.3K −$1.70/SF
EGI
$60.9K $23.86/SF
− OpEx
−$18.3K −$7.16/SF
NOI
$42.6K $16.70/SF
Area
Newport County, RI
Vacancy
6.65%
Lease Rate
$25.56 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$852,480
Cap Rate 7%
$608,914
Cap Rate 9%
$473,600
Alternative Uses
Best Use
Multifamily LT 5
$608.9K
$532.8K – $710.4K
NOI $42,624 @ 7.0% cap · market cap 3.16%
Second Best
Apartment 5plus
$541.5K
$473.8K – $631.8K
NOI $37,907 @ 7.0% cap · market cap 2.81%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
66.7%
Occupancy
Multi-tenant
Tenancy
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
983
Businesses Nearby
Explore this area
Business Placement
Demographics for 02840, RI
23,902
Population
13,515
Households
1.8
Avg Household Size
40
Median Age
55%
College-Educated
95%
High-School Grad
7.3 sq mi
ZIP Area
3,274
Density / Sq Mi
$83,515
Median Household Income
$41,228
Median Earnings
$1,610
Median Rent
$669,500
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Triplex - Three-family home with an updated first-floor three-bedroom unit and two one-bedroom units, with two leases in place.
Where is this triplex located?
The property is located at 32 Houston Avenue Newport, RI.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: 1880‑built three‑family home in Newport’s Fifth Ward with an updated first‑floor 3‑bedroom unit and two 1‑bedroom units; Oversized 8,500+ sq ft lot with ample off‑street parking and room for outdoor improvements; Updated first‑floor unit includes in‑unit laundry
