Property Valuation
A Washington apartment building has an NOI of $90,000 and sells for $1,200,000. What cap rate does this represent?
A6.5%
B7.5%✓ Correct
C8.0%
D9.0%
Explanation
Cap Rate = NOI ÷ Value = $90,000 ÷ $1,200,000 = 0.075 = 7.
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