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Updated on
March 16, 2024

CAP Rate

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The expected rate of return on an investment property based on the income that the property is projected to generate.

It is calculated by dividing the net operating income (NOI) of a property by its market value. The cap rate is often used as a tool for comparing the relative value of different real estate investments, as it reflects the income-generating potential of the property.

Cap rates can vary significantly depending on the location and type of property, as well as economic and market conditions.

To learn more about cap rates - visit here.

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