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BombersFM

Cap Rate Calculator

Evaluate a rental property using capitalization rate from net operating income and value.

Capitalization rate

7.2%

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FAQ

What is a cap rate?

Net operating income divided by property value — the unleveraged first-year return a property produces.

What cap rate is good?

It tracks risk and location: prime-city assets may trade near 4–5%, while riskier markets command 8% or more.

What is excluded from NOI?

Mortgage payments and income taxes are excluded; NOI reflects the property's operations before financing.

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