Property Valuation
A Wyoming apartment building was purchased for $1,200,000. The annual NOI is $96,000. What is the overall capitalization rate?
A6%
B8%✓ Correct
C10%
D12.5%
Explanation
Cap Rate = NOI ÷ Value = $96,000 ÷ $1,200,000 = 0.08 = 8%. Using the values given ($1,200,000, $96,000), apply the appropriate formula.. The correct answer is 8%.. This is a common calculation on the Wyoming real estate exam.
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