If a property is priced at $2 million and the NOI is $80,000, what is the capitalization rate?

Name: If a property is priced at $2 million and the NOI is $80,000, what is the capitalization rate?
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Quizplus · Accepted Answer

The capitalization rate is calculated by dividing the Net Operating Income (NOI) by the property's value and then multiplying by 100 to get a percentage. So, $80,000 / $2,000,000 = 0.04, or 4%.

If a Property Is Priced at $2 Million and the NOI