{"id":2125,"date":"2022-07-16T22:27:46","date_gmt":"2022-07-17T05:27:46","guid":{"rendered":"https:\/\/rentalrealestate.com\/?page_id=2125"},"modified":"2024-02-15T14:32:13","modified_gmt":"2024-02-15T22:32:13","slug":"cap-rate","status":"publish","type":"page","link":"https:\/\/rentalrealestate.com\/calculators\/cap-rate\/","title":{"rendered":"Free Rental Property Cap Rate Calculator"},"content":{"rendered":"\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/cap-rate-calc.png\" alt=\"Capitalization Rate (Cap Rate) Calculator\" class=\"wp-image-12098 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/cap-rate-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/cap-rate-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/cap-rate-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/cap-rate-calc.png\" alt=\"Capitalization Rate (Cap Rate) Calculator\" class=\"wp-image-12098\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/cap-rate-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/cap-rate-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/cap-rate-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p>Capitalization Rates (commonly called &#8220;Cap Rates&#8221;) are real estate valuation metrics that are commonly used among real estate investors to compare different investment properties. Our Cap Rate Calculator is a convenient <a href=\"https:\/\/rentalrealestate.com\/tools\/\">tool for rental real estate investors<\/a> to easily understand and calculate cap rates for investment properties.<\/p>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-default\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-calculate-rental-property-cap-rates\">Calculate Rental Property Cap Rates<\/h2>\n\n\n\n<p>Please input the required fields (*) below to calculate a property&#8217;s Capitalization Rate (Cap Rate). See our guide on&nbsp;<a href=\"https:\/\/rentalrealestate.com\/calculators\/noi-calculator\/\">how to calculate Net Operating Income (NOI)<\/a><\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<div class=\"wp-block-group has-background-color has-midnight-gradient-background has-text-color has-background has-link-color wp-elements-c8e084b8dd44f4fb1841558646498702\" style=\"border-width:1px;border-radius:10px;padding-top:var(--wp--preset--spacing--50);padding-right:var(--wp--preset--spacing--50);padding-bottom:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--50)\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-1 wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-cap-rate-calculator\">Cap Rate Calculator<\/h3>\n\n\n\n<p class=\"has-text-align-left\"><form name=\"cp_calculatedfieldsf_pform_1\" id=\"cp_calculatedfieldsf_pform_1\" action=\"https:\/\/rentalrealestate.com\/calculators\/cap-rate\/\" method=\"post\" enctype=\"multipart\/form-data\" onsubmit=\"return fbuilderjQuery.fbuilder.doValidate(this);\" class=\"cff-form  persist-form\"  dir=\"ltr\">\n<input type=\"hidden\" name=\"cp_calculatedfieldsf_pform_psequence\" value=\"_1\" \/>\n<input type=\"hidden\" name=\"cp_calculatedfieldsf_id\" value=\"6\" \/>\n<input type=\"hidden\" name=\"cp_ref_page\" value=\"https:\/\/rentalrealestate.com\" \/>\n<pre style=\"display:none !important;\"><script type=\"text\/javascript\">form_structure_1=[[{\"form_identifier\":\"\",\"name\":\"fieldname4\",\"shortlabel\":\"\",\"index\":0,\"ftype\":\"fcurrency\",\"userhelp\":\"\",\"audiotutorial\":\"\",\"userhelpTooltip\":false,\"tooltipIcon\":false,\"csslayout\":\"\",\"title\":\"Net Operating Income (NOI)\",\"predefined\":\"$50,000\",\"predefinedClick\":false,\"required\":true,\"exclude\":false,\"readonly\":false,\"numberpad\":false,\"spinner\":false,\"size\":\"large\",\"currencySymbol\":\"$\",\"currencyText\":\"USD\",\"thousandSeparator\":\",\",\"centSeparator\":\".\",\"noCents\":false,\"min\":\"\",\"max\":\"\",\"step\":\"\",\"formatDynamically\":false,\"twoDecimals\":true,\"fBuild\":{},\"parent\":\"\"},{\"form_identifier\":\"\",\"name\":\"fieldname8\",\"shortlabel\":\"\",\"index\":1,\"ftype\":\"fCommentArea\",\"userhelp\":\"\",\"audiotutorial\":\"\",\"userhelpTooltip\":false,\"tooltipIcon\":false,\"csslayout\":\"\",\"title\":\"\",\"fBuild\":{},\"parent\":\"\"},{\"form_identifier\":\"\",\"name\":\"fieldname5\",\"shortlabel\":\"\",\"index\":2,\"ftype\":\"fcurrency\",\"userhelp\":\"\",\"audiotutorial\":\"\",\"userhelpTooltip\":false,\"tooltipIcon\":false,\"csslayout\":\"\",\"title\":\"Property Value\",\"predefined\":\"$750,000\",\"predefinedClick\":false,\"required\":true,\"exclude\":false,\"readonly\":false,\"numberpad\":false,\"spinner\":false,\"size\":\"large\",\"currencySymbol\":\"$\",\"currencyText\":\"USD\",\"thousandSeparator\":\",\",\"centSeparator\":\".\",\"noCents\":false,\"min\":\"\",\"max\":\"\",\"step\":\"\",\"formatDynamically\":false,\"twoDecimals\":true,\"fBuild\":{},\"parent\":\"\"},{\"form_identifier\":\"\",\"name\":\"fieldname9\",\"shortlabel\":\"\",\"index\":3,\"ftype\":\"fhtml\",\"userhelp\":\"\",\"audiotutorial\":\"\",\"userhelpTooltip\":false,\"tooltipIcon\":false,\"csslayout\":\"\",\"fcontent\":\"\\u003Chr style=\\u0022width:100%;height:0.5px;;color:white;\\u0022\\u003E\\n\",\"fBuild\":{},\"parent\":\"\"},{\"dependencies\":[{\"rule\":\"\",\"complex\":false,\"fields\":[\"\"]}],\"form_identifier\":\"\",\"name\":\"fieldname1\",\"shortlabel\":\"\",\"index\":4,\"ftype\":\"fCalculated\",\"userhelp\":\"\",\"audiotutorial\":\"\",\"userhelpTooltip\":false,\"tooltipIcon\":false,\"csslayout\":\"\",\"title\":\"\\u003Cb\\u003ECap Rate:\\u003C\\\/b\\u003E\",\"predefined\":\"%6.67\",\"required\":false,\"exclude\":false,\"size\":\"large\",\"eq\":\"PREC(((fieldname4\\\/fieldname5) * 100),2)\",\"min\":\"\",\"max\":\"\",\"suffix\":\"%\",\"prefix\":\"\",\"decimalsymbol\":\".\",\"groupingsymbol\":\"\",\"readonly\":true,\"currency\":false,\"noEvalIfManual\":true,\"formatDynamically\":true,\"dynamicEval\":true,\"hidefield\":false,\"validate\":false,\"fBuild\":{},\"parent\":\"\",\"predefinedClick\":true}],{\"0\":{\"title\":\"\",\"description\":\"\",\"formlayout\":\"left_aligned\",\"formtemplate\":\"\",\"persistence\":1,\"evalequationsevent\":\"1\",\"evalequations\":1,\"loading_animation\":1,\"autocomplete\":1,\"animate_form\":0,\"customstyles\":\"\",\"evalequations_delay\":0,\"animation_effect\":\"fade\",\"direction\":\"ltr\"},\"formid\":\"cp_calculatedfieldsf_pform_1\"}];<\/script><\/pre>\n<div id=\"fbuilder\">\n\t<div class=\"cff-processing-form\"><\/div>\t<div id=\"fbuilder_1\">\n\t\t<div id=\"formheader_1\"><\/div>\n\t\t<div id=\"fieldlist_1\"><\/div>\n\t\t<div class=\"clearer\"><\/div>\n\t<\/div>\n<\/div>\n\t<div id=\"cp_subbtn_1\" class=\"cp_subbtn\" style=\"display:none;\"><\/div><div class=\"clearer\"><\/div>\n\t<input type=\"hidden\" id=\"_cpcff_public_nonce\" name=\"_cpcff_public_nonce\" value=\"7a36f366f2\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/wp-json\/wp\/v2\/pages\/2125\" \/><\/form>\n\t<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"has-small-font-size\">This calculator is meant for educational purposes only. The calculation generated from the calculator does not, and is not intended to, constitute financial advice. As such, all information, content, and materials available on this site are for general informational purposes only. Please review our <a href=\"https:\/\/rentalrealestate.com\/editorial-standards\/\">Editorial Standards<\/a> for more info.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center aligncenter is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/rentalrealestate.com\/products\/\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"250\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/2-free-downaloads-ad.png\" alt=\"\" class=\"wp-image-16169 lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 300px; --smush-placeholder-aspect-ratio: 300\/250;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"250\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/2-free-downaloads-ad.png\" alt=\"\" class=\"wp-image-16169\"\/><\/noscript><\/a><\/figure><\/div><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-default\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Cap Rate Formula<\/h2>\n\n\n\n<p>The standard mathematical formula for calculating capitalization rate is noted below. Note that you will first need to determine Net Operating Income and Fair Market Value values first to input into the <a href=\"https:\/\/rentalrealestate.com\/calculators\/\">rental property calculator<\/a>.<\/p>\n\n\n\n<p class=\"has-text-align-center has-secondary-color has-text-color has-link-color has-large-font-size wp-elements-9edc8487804d99e9924df73422b712d8\"><strong>Cap Rate = (Net Operating Income<sup>1<\/sup>)\/(Fair Market Value<sup>2<\/sup>)<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group\" style=\"padding-right:50px;padding-left:50px\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-normal-font-size\"><strong>1. Net Operating Income &#8211;<\/strong> A property&#8217;s gross operating income, minus its operating expenses.<\/p>\n\n\n\n<p><strong>2. Property Value &#8211; <\/strong>Also sometimes called Fair Market Value, is the price in which someone is willing to pay for a property and the amount the seller is willing to accept. <\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-default\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-understanding-cap-rates-net-income-and-market-value\">Understanding Cap Rates &#8211; Net Income and Market Value<\/h2>\n\n\n\n<p>The Capitalization Rate (Cap Rate) is a key metric used in real estate to assess the return on an investment property, calculated by dividing the Net Operating Income (NOI) by the property&#8217;s current market value. This rate offers an indication of potential return, with a higher Cap Rate typically signifying a higher return but potentially higher risk as well. The relationship between Net Income and Market Value in this calculation helps investors understand the property&#8217;s profitability in relation to its current market worth.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-net-operating-income-noi\">Net Operating Income (NOI)<\/h3>\n\n\n\n<p>Net Operating Income is the total income generated by a property minus the operating expenses, excluding any financing costs like mortgage payments. It&#8217;s a crucial figure that represents the actual cash flow from the property&#8217;s operations. NOI is considered in the Cap Rate calculation as it reflects the property&#8217;s ability to generate income through its regular operations. Factors like rental income, vacancy rates, and operational costs directly affect the NOI.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-fair-market-value\">Fair Market Value<\/h3>\n\n\n\n<p>Fair Market Value is the estimated price at which a property would sell in the current market. It&#8217;s determined by several factors including location, property condition, current market trends, and comparable sales in the area. In the Cap Rate formula, the Fair Market Value is used as the denominator, providing a context for the NOI in terms of the property&#8217;s current market worth. Accurately determining this value is essential for a realistic assessment of the investment&#8217;s potential return.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group alignfull has-midnight-gradient-background has-background\" style=\"padding-top:35px;padding-right:25px;padding-bottom:50px;padding-left:25px\"><div class=\"wp-block-group__inner-container is-layout-flow wp-container-core-group-is-layout-4 wp-block-group-is-layout-flow\">\n<h3 class=\"wp-block-heading has-background-color has-text-color has-link-color has-x-large-font-size wp-elements-bafca213486a9b98a73751665cd8d9f4\" id=\"h-the-1-rental-property-newsletter\">The #1 Rental Property Newsletter<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-4 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p class=\"has-background-color has-text-color has-link-color wp-elements-9f863b655fc7d93200a7564c3b902062\">Once a month, we send out an exclusive Rental Property Market Update with top stories, current mortgage rates, building products, and more. No spam and unsubscribe anytime.<\/p>\n\n\n<script>(function() {\n\twindow.mc4wp = window.mc4wp || {\n\t\tlisteners: [],\n\t\tforms: {\n\t\t\ton: function(evt, cb) {\n\t\t\t\twindow.mc4wp.listeners.push(\n\t\t\t\t\t{\n\t\t\t\t\t\tevent   : evt,\n\t\t\t\t\t\tcallback: cb\n\t\t\t\t\t}\n\t\t\t\t);\n\t\t\t}\n\t\t}\n\t}\n})();\n<\/script><!-- Mailchimp for WordPress v4.9.13 - https:\/\/wordpress.org\/plugins\/mailchimp-for-wp\/ --><form id=\"mc4wp-form-1\" class=\"mc4wp-form mc4wp-form-5481\" method=\"post\" data-id=\"5481\" data-name=\"Reusable\" ><div class=\"mc4wp-form-fields\"><p>\r\n  <label>\r\n\t\t<small><input type=\"email\" name=\"EMAIL\" placeholder=\"Your Email Address\" required style=\"width:70%\"\/><\/small>\r\n\r\n  &nbsp;<input type=\"submit\" value=\"Subscribe\" style=\"background-color:white; color:#3e69dc;\"\/>\r\n<\/label>\r\n\r\n<\/p><\/div><label style=\"display: none !important;\">Leave this field empty if you're human: <input type=\"text\" name=\"_mc4wp_honeypot\" value=\"\" tabindex=\"-1\" autocomplete=\"off\" \/><\/label><input type=\"hidden\" name=\"_mc4wp_timestamp\" value=\"1714234726\" \/><input type=\"hidden\" name=\"_mc4wp_form_id\" value=\"5481\" \/><input type=\"hidden\" name=\"_mc4wp_form_element_id\" value=\"mc4wp-form-1\" \/><div class=\"mc4wp-response\"><\/div><\/form><!-- \/ Mailchimp for WordPress Plugin -->\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"512\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/newspaper.png\" alt=\"\" class=\"wp-image-9240 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper.png 512w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper-150x150.png 150w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper-120x120.png 120w\" data-sizes=\"(max-width: 512px) 100vw, 512px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 512px; --smush-placeholder-aspect-ratio: 512\/512;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"512\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/newspaper.png\" alt=\"\" class=\"wp-image-9240\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper.png 512w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper-150x150.png 150w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/newspaper-120x120.png 120w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/noscript><\/figure>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rental-property-cap-rate-resources\">Rental Property Cap Rate Resources<\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/rentalrealestate.com\/finance\/appraisal-valuation\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-1024x576.png\" alt=\"Appraisal and Valuation\" class=\"wp-image-4910 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-1024x576.png 1024w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-300x169.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-768x432.png 768w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image.png 1200w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-1024x576.png\" alt=\"Appraisal and Valuation\" class=\"wp-image-4910\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-1024x576.png 1024w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-300x169.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image-768x432.png 768w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/2023\/02\/appraisal-valuation-image.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/finance\/appraisal-valuation\/\">Ultimate Guide to Rental Property Appraisals &amp; Valuations<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/rentalrealestate.com\/property-management\/rent\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/rent-payments-1024x576.jpg\" alt=\"Rental Property Rent Payments\" class=\"wp-image-6897 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments-1024x576.jpg 1024w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments-300x169.jpg 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments-768x432.jpg 768w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments.jpg 1200w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/rent-payments-1024x576.jpg\" alt=\"Rental Property Rent Payments\" class=\"wp-image-6897\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments-1024x576.jpg 1024w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments-300x169.jpg 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments-768x432.jpg 768w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-payments.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/property-management\/rent\/\">Ultimate Guide to Rental Property Rent Payments<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group\" style=\"border-width:1px;border-radius:10px;padding-top:var(--wp--preset--spacing--50);padding-right:var(--wp--preset--spacing--50);padding-bottom:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--50)\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-container-core-group-is-layout-5 wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading has-x-large-font-size\" id=\"h-what-is-a-rental-property-cap-rate\">What is a Rental Property Cap Rate?<\/h2>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-6 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><lord-icon src=\"https:\/\/cdn.lordicon.com\/meypkgwe.json\" colors=\"primary:#121331,secondary:#3e69dc\" style=\"width:200px;height:200px;\"><\/lord-icon><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p>Cap Rate is the ratio of <a href=\"https:\/\/rentalrealestate.com\/calculators\/noi-calculator\/\">Net Operating Income (NOI)<\/a> to Property Value and also a valuation metric used to estimate the expected rate of return when comparing multiple investment real estate properties.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 is-style-fill\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/rentalrealestate.com\/dictionary\/\" style=\"border-radius:10px\">More Rental Real Estate Terms \u2192<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-rental-property-cap-rate-calculator-faq\">Rental Property Cap Rate Calculator FAQ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-is-a-higher-or-lower-cap-rate-better-for-investors\">Is a Higher or Lower Cap Rate Better for Investors?<\/h3>\n\n\n\n<p>Whether a higher or lower Cap Rate is better depends on the investor&#8217;s objectives and the market context. A higher Cap Rate typically suggests a higher potential return but may also indicate higher perceived risk or less property appreciation potential. Conversely, a lower Cap Rate can suggest a more stable or desirable property or area but may come with a lower yield.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-why-might-two-similar-properties-in-the-same-area-have-different-cap-rates\">Why Might Two Similar Properties in the Same Area Have Different Cap Rates?<\/h3>\n\n\n\n<p>Factors such as the age of the property, the quality of tenants, lease durations, property condition, and potential for future rent increases can all influence Cap Rates. Even within the same area, variations in these factors can lead to different Cap Rates for seemingly similar properties.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-how-does-cap-rate-relate-to-other-financial-metrics-like-return-on-investment-roi-or-cash-on-cash-return\">How Does Cap Rate Relate to Other Financial Metrics Like Return on Investment (ROI) or Cash on Cash Return?<\/h3>\n\n\n\n<p>While the Cap Rate measures a property&#8217;s return without considering financing, ROI takes into account the total return on an investment, including appreciation, tax benefits, and changes in equity. Cash on Cash Return focuses on the annual return relative to the amount of cash invested, considering financing costs. Each metric offers a different perspective on the profitability and performance of an investment.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\" id=\"h-what-are-the-limitations-or-drawbacks-to-using-cap-rate-for-evaluation\">What are the Limitations or Drawbacks to Using Cap Rate for Evaluation?<\/h3>\n\n\n\n<p>While the Cap Rate is a useful quick metric, it doesn&#8217;t account for property financing, future capital expenditures, or potential changes in NOI over time. Additionally, it can be influenced by short-term market fluctuations. Investors should use it in conjunction with other metrics and due diligence processes.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns are-vertically-aligned-center is-layout-flex wp-container-core-columns-is-layout-7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<center><a href=\"https:\/\/innago.com\/best-rental-management-software-mbl\/?utm_source=Manual&#038;utm_medium=Affiliate+Program&#038;utm_campaign=11111111&amp;utm_id=rentalrealestate&amp;a_bid=b5fe8759\" target=\"_top\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-src=\"\/\/innago.postaffiliatepro.com\/accounts\/default1\/ba97a1q\/b5fe8759.png\" alt=\"\" title=\"\" width=\"728\" height=\"90\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" style=\"--smush-placeholder-width: 728px; --smush-placeholder-aspect-ratio: 728\/90;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"\/\/innago.postaffiliatepro.com\/accounts\/default1\/ba97a1q\/b5fe8759.png\" alt=\"\" title=\"\" width=\"728\" height=\"90\" \/><\/noscript><\/a><img loading=\"lazy\" decoding=\"async\" style=\"border:0\" src=\"https:\/\/innago.postaffiliatepro.com\/scripts\/ia97a1q?utm_id=rentalrealestate&amp;a_bid=b5fe8759\" width=\"1\" height=\"1\" alt=\"\" \/><\/center>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-more-rental-property-calculators\">More Rental Property Calculators<\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/tenant-turnover-rate\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/tenant-turnover-calc.png\" alt=\"Tenant Turnover Rate Calculator\" class=\"wp-image-12101 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/tenant-turnover-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/tenant-turnover-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/tenant-turnover-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/tenant-turnover-calc.png\" alt=\"Tenant Turnover Rate Calculator\" class=\"wp-image-12101\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/tenant-turnover-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/tenant-turnover-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/tenant-turnover-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/tenant-turnover-rate\/\">Tenant Turnover Rate<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/vacancy-rate\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/vacancy-rate-calc.png\" alt=\"Vacancy Rate Calculator\" class=\"wp-image-12100 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/vacancy-rate-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/vacancy-rate-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/vacancy-rate-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/vacancy-rate-calc.png\" alt=\"Vacancy Rate Calculator\" class=\"wp-image-12100\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/vacancy-rate-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/vacancy-rate-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/vacancy-rate-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/vacancy-rate\/\">Vacancy Rate<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/apartment-size\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/apartment-size-calc.png\" alt=\"Apartment Size Calculator\" class=\"wp-image-12099 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/apartment-size-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/apartment-size-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/apartment-size-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/apartment-size-calc.png\" alt=\"Apartment Size Calculator\" class=\"wp-image-12099\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/apartment-size-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/apartment-size-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/apartment-size-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/apartment-size\/\">Apartment Size<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/rent-increase\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/rent-increase-calc.png\" alt=\"Rent Increase Calculator\" class=\"wp-image-12265 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-increase-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-increase-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-increase-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/rent-increase-calc.png\" alt=\"Rent Increase Calculator\" class=\"wp-image-12265\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-increase-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-increase-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rent-increase-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/rent-increase\/\">Rent Increase<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/maintenance\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/maintenance-expense-calc.png\" alt=\"Annual Maintenance Expense Calculator\" class=\"wp-image-12097 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/maintenance-expense-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/maintenance-expense-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/maintenance-expense-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/maintenance-expense-calc.png\" alt=\"Annual Maintenance Expense Calculator\" class=\"wp-image-12097\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/maintenance-expense-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/maintenance-expense-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/maintenance-expense-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/maintenance\/\">Maintenance Expenses<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/property-management-fees\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/prop-management-fees-calc.png\" alt=\"Property Management Cost Calculator\" class=\"wp-image-12096 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/prop-management-fees-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/prop-management-fees-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/prop-management-fees-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/prop-management-fees-calc.png\" alt=\"Property Management Cost Calculator\" class=\"wp-image-12096\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/prop-management-fees-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/prop-management-fees-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/prop-management-fees-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/property-management-fees\/\">Property Management Fees<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/property-sale-commission\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/sale-commission-calc.png\" alt=\"Property Sale Commission Calculator\" class=\"wp-image-12095 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/sale-commission-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/sale-commission-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/sale-commission-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/sale-commission-calc.png\" alt=\"Property Sale Commission Calculator\" class=\"wp-image-12095\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/sale-commission-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/sale-commission-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/sale-commission-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/property-sale-commission\/\">Property Sale Commission<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/net-operating-income-noi\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/noi-calc.png\" alt=\"Net Operating Income (NOI) Calculator\" class=\"wp-image-12094 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/noi-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/noi-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/noi-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/noi-calc.png\" alt=\"Net Operating Income (NOI) Calculator\" class=\"wp-image-12094\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/noi-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/noi-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/noi-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/net-operating-income-noi\/\">Net Operating Income (NOI)<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/commercial-valuation\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/com-valuation-calc.png\" alt=\"Commercial Real Estate Value Calculator\" class=\"wp-image-12088 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/com-valuation-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/com-valuation-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/com-valuation-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/com-valuation-calc.png\" alt=\"Commercial Real Estate Value Calculator\" class=\"wp-image-12088\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/com-valuation-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/com-valuation-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/com-valuation-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/commercial-valuation\/\">Commercial Property Valuation<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/rentalrealestate.com\/calculators\/\"><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" data-src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/rental-property-calc.png\" alt=\"Rental Property Calculators\" class=\"wp-image-12093 lazyload\" data-srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rental-property-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rental-property-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rental-property-calc-150x150.png 150w\" data-sizes=\"(max-width: 400px) 100vw, 400px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 400px; --smush-placeholder-aspect-ratio: 400\/400;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"400\" height=\"400\" src=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/rental-property-calc.png\" alt=\"Rental Property Calculators\" class=\"wp-image-12093\" srcset=\"https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rental-property-calc.png 400w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rental-property-calc-300x300.png 300w, https:\/\/rentalrealestate.com\/wp-content\/uploads\/\/rental-property-calc-150x150.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/noscript><\/a><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/rentalrealestate.com\/calculators\/\">All Calculators<\/a><\/strong><\/figcaption><\/figure>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/rentalrealestate.com\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/rentalrealestate.com\/calculators\/\">All Calculators<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>Free Rental Property Cap Rate Calculator<\/strong><\/span><\/span><\/div>","protected":false},"excerpt":{"rendered":"<p>Capitalization Rates (commonly called &#8220;Cap Rates&#8221;) are real estate valuation metrics that are commonly used among real estate investors to compare different investment properties. Our Cap Rate Calculator is a convenient tool for rental real estate investors to easily understand and calculate cap rates for investment properties. Calculate Rental Property Cap Rates Please input the<a class=\"more-link\" href=\"https:\/\/rentalrealestate.com\/calculators\/cap-rate\/\">Continue reading <span class=\"screen-reader-text\">&#8220;Free Rental Property Cap Rate Calculator&#8221;<\/span><\/a><\/p>\n","protected":false},"author":142363303,"featured_media":12098,"parent":2171,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"footnotes":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v22.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Free Rental Property Cap Rate Calculator (Easy)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rentalrealestate.com\/calculators\/cap-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Free Rental Property Cap Rate Calculator\" \/>\n<meta property=\"og:description\" content=\"Capitalization Rates (commonly called &#8220;Cap Rates&#8221;) are real estate valuation metrics that are commonly used among real estate investors to compare different investment properties. 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