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.
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