An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy or an annual average of several years' income expectancies and total property price or value; used to convert net operating income into an indication of overall property value.
A rate used to convert net operating income into an estimate of value, which consists of two components; rate of return of the investment and rate of return on the investment.
A measure of an investment property's income producing strength. This calculation is the net operating income divided by the sales price or total cost of the investment. It is a subset of the standard capitalization rate measurement. For more information, see the "Real Estate Investment Analysis Tools" article in the "Real Estate Investing" section.