Real Estate Math

A Mississippi apartment manager improves energy efficiency, reducing utility expenses from $18,000 to $12,000 annually. Using a 7% cap rate, the increase in property value from this NOI improvement is approximately:

A$85,714✓ Correct
B$42,857
C$60,000
D$6,000

Explanation

NOI increase = $18,000 - $12,000 = $6,000 per year. Value increase = NOI Increase ÷ Cap Rate = $6,000 ÷ 0.

Related Mississippi Real Estate Math Questions

Practice More Mississippi Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Mississippi Quiz →