Short answer
Alarm and security companies are valued on recurring monthly revenue (RMR). In 2024 transactions, monitoring books sold for roughly 36× monthly RMR for smaller portfolios and up to 46× for larger ones1, with attrition the biggest swing factor — under-5% books reach 40–50× RMR while over-15% books are largely unsellable6. Industry attrition averages about 10% of accounts per year6, and in 2025 69% of dealers grew their RMR (average +23%)2.
A synthesis of published third-party data — not Standara customer data. Every figure is sourced below. Updated July 2026.
The benchmark at a glance
| Metric | Benchmark (2024–2026) | Source |
|---|---|---|
| U.S. security/alarm industry size | ≈ $78B ($41B install + $37B recurring), ~6–7% annual growth | 1 |
| Global alarm-monitoring market | $65.1B (2025) → $69.1B (2026) → $92.96B (2031), 6.1% CAGR | 4 |
| Typical residential monitoring ARPU (U.S.) | ≈ $30–$35/mo average; $20–$80/mo typical range | 7 |
| RMR valuation multiple (small book, <$50K RMR) | ≈ 36× monthly RMR (2024 transactions) | 1 |
| RMR valuation multiple (large book, >$500K RMR) | ≈ 46× monthly RMR (2024 transactions) | 1 |
| Industry-average account attrition | ≈ 10%/yr (residential 8–10%, commercial 5–8%) | 6 |
| Dealers reporting RMR growth (2025) | 69% grew RMR, average increase +23% (median +$100K) | 2 |
How RMR is valued
Monitoring accounts trade as a multiple of monthly RMR. Across 2024 transactions, Barnes Associates reported smaller books (under $50K RMR) averaging ≈ 36× monthly RMR and larger books (over $500K RMR) averaging ≈ 46× — a size premium reflecting how few large portfolios exist1. But the multiple lives or dies on attrition6:
| Annual attrition | Typical RMR multiple | Why |
|---|---|---|
| Under 5% | 40–50× RMR | Institutional-grade; lifetime value compounds, premium bidding |
| 10–15% | 25–35× RMR | Typical independent operator range |
| Above 15% | Largely unsellable | Most institutional buyers pass; account base erodes too fast |
Fire & life-safety: recurring mix drives the multiple
Fire and life-safety companies are usually valued on EBITDA rather than a straight RMR multiple, but the pattern rhymes — the more recurring inspection and monitoring revenue, the higher the multiple. Breakwater M&A's 2026 transaction data5:
| Company profile | EBITDA multiple |
|---|---|
| Under $1M revenue, minimal recurring | 3–4× EBITDA |
| Install-focused, limited inspection/monitoring | 4–5× EBITDA |
| Balanced install / service / inspection | 5–6.5× EBITDA |
| Strong RMR base (40%+ recurring), multi-year contracts | 6–8× EBITDA |
| Platform-ready (high RMR, low attrition, scalable) | 7–10× EBITDA |
Fire-monitoring MRR itself trades at roughly 35–45× monthly, and recurring inspection revenue at ~2–3.5× annual — with longer contract terms commanding the premium5.
RMR growth & momentum
RMR is growing across the board. In SDM Magazine’s 2025 dealer survey 2:
69%2
of RMR-generating dealers grew their RMR in 2025
+23%2
average RMR increase (median dollar gain ~$100K)
+7%3
RMR growth among the largest firms (SDM 100) — highest in a decade
Structurally, the industry is consolidating and premiumizing: national-scope firms now hold roughly 48% of industry RMR, and operators are making 3–4% price increases stick where 1%/year used to be the norm1.
Standara’s take
What the numbers mean for operators
The data points one direction: every point of attrition you avoid is worth far more than the monthly revenue it represents. At a 40× multiple, $1,000 of RMR you keep instead of losing is $40,000 of enterprise value protected — which is why buyers pay a premium for books under 5% attrition6.
The operators pulling attrition down and RMR up tend to share unglamorous fundamentals: recurring billing that actually runs on time, fewer failed or missed charges, clean payment records, and books that reconcile to the accounting system. That’s exactly the machinery Standara automates — turning recurring plans into invoices automatically, routing them by payment type, and keeping QuickBooks in sync.
Want to see where you land against these benchmarks? Work out your own net RMR growth and attrition rate with the RMR calculator, or read how to calculate RMR growth.
Frequently asked questions
What multiple does alarm RMR sell for in 2026?
Monitoring accounts are valued as a multiple of monthly recurring revenue. In 2024 transactions, smaller books (under $50K RMR) averaged about 36× monthly RMR and larger books (over $500K RMR) about 46× — a size premium driven by scarcity of large portfolios. The single biggest swing factor is attrition: books under 5% attrition can reach 40–50× RMR, while books above 15% are largely unsellable to institutional buyers.
What is a good attrition rate for an alarm company?
The industry average is roughly 10% of accounts per year, with residential typically 8–10% and commercial 5–8%. Buyers pay a premium for books under 5% because lifetime value compounds. Attrition is the metric that most directly moves both cash flow and enterprise value.
How fast is RMR growing across the industry?
In SDM Magazine's 2025 dealer survey, 69% of companies that generate RMR reported an increase over the prior year, with the average increase around 23%. The largest firms (SDM 100) reported roughly 7% RMR growth — the highest in a decade — with 90% reporting growth.
How big is the alarm monitoring market?
Estimates vary by scope. The broader U.S. electronic-security industry is around $78 billion (about $41B installation and $37B recurring), growing 6–7% a year. The narrower global alarm-monitoring segment is estimated at roughly $65 billion in 2025, projected to about $93 billion by 2031 at a ~6% CAGR.
Methodology & sources
This benchmark compiles publicly reported figures from industry financial reviews, trade-press dealer surveys, market-research estimates, and M&A advisors. Figures span 2024–2026 and are stated as ranges because scope and methodology vary by source; they are not derived from Standara customer data. Where two sources measure different scopes (e.g. the U.S. electronic-security industry vs. the global alarm-monitoring segment), each is attributed separately rather than blended.
- [1] Barnes Associates / Barnes-Buchanan — annual industry financial review (industry size, structure, valuation multiples), as reported by SecurityInfoWatch, 2025. https://www.securityinfowatch.com/integrators/article/55306317/alarm-industry-players-overcoming-headwinds
- [2] SDM Magazine — 2025 Annual Industry Forecast (dealer RMR survey). https://www.sdmmag.com/articles/103864-sdm-2025-industry-forecast-a-year-of-optimism
- [3] SDM Magazine — SDM 100, Top Security Dealers of 2025. https://www.sdmmag.com/articles/104215-sdm-top-100-security-dealers-of-2025
- [4] Mordor Intelligence — Alarm Monitoring Market: Size, Share & Industry (2025). https://www.mordorintelligence.com/industry-reports/alarm-monitoring-market
- [5] Breakwater M&A — Fire Alarm & Life Safety Company Valuation Multiples 2026. https://www.breakwaterma.com/blog/fire-alarm-life-safety-company-valuation-multiples-2026
- [6] CT Acquisitions — Security Monitoring Business Valuation (RMR math, attrition tiers), 2026. https://ctacquisitions.com/security-monitoring-business-valuation/
- [7] SafeWise — Home Security System Cost survey (monitoring ARPU). https://www.safewise.com/home-security-systems/cost/