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Capitalization Rate
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment. This is done by dividing the in... More »

Capitalization rate - Wikipedia


The capitalization rate is calculated using a measure of cash flow ... Generally, NOI is defined as income (earnings) before ...

Capitalization Rate Definition | Investopedia


The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The capitalization  ...

What You Should Know About The Cap Rate - PropertyMetrics


Jun 3, 2013 ... What is a cap rate? The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value.

What's a Good Cap Rate for an Investment Property? | Fundrise


May 13, 2016 ... Which begs the question – what is a good cap rate for an investment property ... It's important to remember that a property's cap rate is simply its ...

Cap Rate Formula | What Is Cap Rate? - Creative Real Estate Online


Many real estate investors determine the value of an income property by using the capitalization rate, aka cap rate. It is probably the one most misused concept  ...

Understanding Cap Rates: The Answer Is Nine - Forbes


Apr 22, 2015 ... and when he was finished he would give a final exam in which he would ask the students “what is the average cap rate for all of the buildings ...

Definition of 'Capitalization Rate' - The Economic Times


Definition: Capitalization rate, commonly known as cap rate, is a rate that ... Cap rate = Net operating income / Current market value (Sales price) of the asset

Capitalization Rate – Business Valuation Glossary – ValuAdder


Relationship between the capitalization rate and discount rate used in the ... Capitalization Rate. Definition. A value, typically expressed as a fraction, used to  ...

What is a Capitalization Rate? - Definition from Divestopedia


A capitalization rate (or "cap rate"), in the context of a business valuation, is a rate of return (expressed as a percentage) derived by deducting a growth factor ...