Property Valuation

An Oregon appraiser using the income approach values a property at $950,000. The property generates $76,000 net operating income annually. What capitalization rate was used?

A7.0%
B7.5%
C8.0%✓ Correct
D8.5%

Explanation

Cap rate = NOI ÷ Value = $76,000 ÷ $950,000 = 0.08 = 8.

Related Oregon Property Valuation Questions

Practice More Oregon Real Estate Questions

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

Take the Free Oregon Quiz →