A Capitalization Rate (CAP rate) is the percentage rate of return based on a piece of property’s income. This is the income divided by price. A property that costs $1,000,000 with a net income of $120,000 would have a CAP rate of 8.30 %.
A Capitalization Rate (CAP rate) is the percentage rate of return based on a piece of property’s income. This is the income divided by price. A property that costs $1,000,000 with a net income of $120,000 would have a CAP rate of 8.30 %.