MF1 vs. MF2 in Kelowna: Which Fits Your Lot and Your Pro Forma?
If you’re asking, “Should my lot be MF1 or MF2 in Kelowna?” you’re really asking one thing:
What will actually work on my site — and make sense financially?
Let’s break this down simply.
What Is MF1 Zoning in Kelowna?
MF1 zoning is designed for small-scale multifamily.
Think:
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Duplexes
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Triplexes
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Fourplexes
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Townhouse-style projects
Why MF1 Works Well
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Lower construction cost
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Easier approvals
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Fits well in existing neighborhoods
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Faster to build
MF1 Limitations
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Fewer total units
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Lower gross revenue
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Land price must stay reasonable or margins shrink
Best fit for:
✔ Small builders
✔ First-time developers
✔ Investors testing infill
✔ Lots under ~0.25 acres
What Is MF2 Zoning in Kelowna?
MF2 zoning allows larger multifamily buildings.
Think:
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6–24+ units
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Apartment-style buildings
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Elevator or stacked designs
Why MF2 Can Be Powerful
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More units = higher revenue
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Better economies of scale
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Works well near transit, corridors, and urban centers
MF2 Challenges
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Higher construction costs
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More complex approvals
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Parking, servicing, and design become critical
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Financing is more sensitive
Best fit for:
✔ Experienced developers
✔ Larger sites
✔ Strong rental or resale demand areas
MF1 vs MF2: Pro Forma Reality Check
Here’s the part many people miss.
MF2 does not automatically mean better returns.
Ask yourself:
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Can the land price support the extra density?
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Will rents or resale prices justify higher build costs?
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Can parking and servicing fit the site without killing layout efficiency?
In many cases, a well-designed MF1 project can outperform a poorly planned MF2 build.
How Do You Know Which Fits Your Lot?
The right zoning depends on:
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Lot size and depth
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Frontage and access
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Parking requirements
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Construction costs today (not last year’s)
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Exit strategy (hold vs sell)
This is where many owners leave money on the table — by guessing instead of modeling.
Quick Developer Q&A
Is MF2 always better than MF1?
No. MF2 only works if rents, pricing, and land costs align.
Can MF1 be more profitable?
Yes — especially on smaller lots with lower land acquisition costs.
What’s the biggest mistake landowners make?
Assuming zoning equals value without running a real pro forma.
Final Thought
If you’re trying to figure out MF1 vs MF2 in Kelowna, the answer isn’t the zoning — it’s the math.
For landowners and developers looking to understand what their lot can actually support, Mark & Maddie with Selling Kelowna Real Estate Group | eXp Realty Kelowna help evaluate zoning, density, and real-world numbers before costly mistakes are made.
📧 [email protected]
📞 778-744-0872
Knowing your zoning is helpful.
Knowing what works is everything.
