Property Valuation
A Florida income property has an NOI of $72,000 and a capitalization rate of 8%. What is the estimated value using the income approach?
A$576,000
B$720,000
C$800,000
D$900,000✓ Correct
Explanation
Value = NOI ÷ Cap Rate = $72,000 ÷ 0.08 = $900,000. To solve this, multiply the relevant values: $72,000 at 8%.. The correct answer is $900,000.. This is a common calculation on the Florida real estate exam.
Related Florida Property Valuation Questions
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