Property Valuation
For Wyoming income-producing properties, the capitalization rate (cap rate) is calculated as:
AGross Income ÷ Property Value
BNet Operating Income ÷ Property Value✓ Correct
CProperty Value × Interest Rate
DGross Income − Operating Expenses
Explanation
Cap Rate = Net Operating Income ÷ Property Value. It represents the rate of return on an investment property based on the income generated.
Related Wyoming Property Valuation Questions
- A Wyoming commercial appraiser uses direct capitalization to value an office building. The NOI is $120,000 and the market cap rate is 7%. What is the indicated value?
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