Short for Capitalization Rate.
Capitalization Rate (Cap Rate)
| Business Dictionary: Cap Rate |
| 5min Related Video: Capitalization Rate (Cap Rate) |
| Real Estate Dictionary: Cap Rate |
Same as Capitalization Rate.
| Accounting Dictionary: Capitalization Rate (Cap Rate) |
A tool used by real estate people to determine a value of an investment. It is calculated by dividing a property's net operating income by its purchase price.
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 | Gross Rent Multiplier |
| Property manager |
| Income approach |
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Copyrights:
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 | Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved. Read more |
