Multi-label classification aims to associate multiple labels to a given data/object instance to better describe them. Multi-label data sets are common in a lot of emerging application areas like: Text/Multimedia classification, Bio-Informatics, Medical image annotations and Computer Vision to name a few. There is a growing interest in efficient and accurate multi-label classification. There are two major approaches to perform multi-label classification (i) problem transformation methods and (ii) algorithm adaptation methods. In algorithm adaptation, the traditional classification algorithms are modified to handle multi-label data sets. One classification algorithm which is often modified to do multi-label classification is k- nearest neighbor (kNN). k-nearest neighbor is popular due to its simplicity, easy to implement and seamlessly adaptability. Despite its merits it has several drawbacks like: sensitivity of noisy data, missing values and outliers; feature scaling and often becoming inaccurate for large overlapping solution space. In this paper, a modification to kNN method is suggested for multi-label classification with three improvement strategies (i) selection of local example w.r.t. unknown example – the motivation for this comes from the fact that local and relevant space is vital for the improvement in multi-label classification; (ii) Splitting the input space into multiple sub-spaces for optimal label estimation – the motivation is to estimate label accurately in the presence of noisy labels; And (iii) selection of labels using Mean Average Precision (MAP) estimates – here our motivation is to utilize the training data effectively to maximize the hidden distribution and optimal parameters for the method. The proposed method is implemented and compared with state-of-the-art approaches based on kNN or similar approaches that effectively select and optimize relevant spaces for multi-label classification. Evaluation based on multiple metrics like Hamming loss, Precision/Recall and F-measure are used for evaluation. The suggested approach performed much better than the state-of-the-art on the datasets with strong label cardinalities.