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Property Income and Valuation Metrics

NOI, cap rate, cash-on-cash return, income approach, expense ratio, and property valuation terms.

Property Income and Valuation Metrics covers NOI, cap rates, income yields, cash-on-cash return, resale proceeds, reversion, feasibility, appraisal approaches, rent ratios, and real-estate valuation metrics.

Use these pages when property income, expenses, valuation method, exit assumptions, or investment yield changes collateral value or investor return. It sits inside Mortgages and Real Estate Finance, so readers can move up when the broader property-finance context matters.

Use the table below to choose the narrower mortgage or real-estate finance branch before applying a term to a loan file, closing record, servicing review, investor report, appraisal, or valuation model. Move into the term page when the document, calculation, party role, lien position, or property cash flow matters.

What This Branch Covers

AreaUse it for
Cap Rates and Income YieldsCap rate, going-in cap rate, terminal cap rate, initial yield, and income-yield terms.
Cash Flow, Resale, and Reversion AnalysisAfter-tax cash flow, cash-on-cash return, resale proceeds, reversion, and projection-period terms.
Property Income, Expenses, and NOIEffective gross income, NOI, operating expense, OER, and replacement reserve terms.
Real Estate Multiples and Rent RatiosGross income multiplier, gross rent multiplier, NIM, and price-to-rent ratio terms.
Valuation Methods and FeasibilityIncome approach, cost approach, capitalized value, feasibility, and valuation-analysis terms.

What to Check

  • NOI, effective gross income, operating expenses, reserves, cap rate, discount rate, and rent assumptions.
  • Appraisal, valuation model, rent roll, lease terms, market comparables, sale data, and expense records.
  • Income approach, cost approach, repeat-sales data, cash-on-cash return, reversion, and resale proceeds.
  • Property type, location, occupancy, lease rollover, capex, tax, and financing assumptions.
  • Effect on loan sizing, LTV, debt service, equity return, collateral value, and exit risk.

Common Mistakes

  • Using gross rent as if it were NOI.
  • Ignoring capex, vacancy, reserves, taxes, and lease rollover.
  • Comparing cap rates without property type, lease quality, and market context.
  • Treating appraisal value, transaction price, and model value as identical.

Property-income and valuation content is educational and does not provide appraisal, investment, tax, accounting, legal, or lending advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Cap Rates

Cap rate, going-in cap rate, terminal cap rate, initial yield, and income-yield terms.

Cash Flow and Reversion

After-tax cash flow, cash-on-cash return, resale proceeds, reversion, and projection-period terms.

Income and NOI

Effective gross income, NOI, operating expense, OER, and replacement reserve terms.

Multiples

Gross income multiplier, gross rent multiplier, NIM, and price-to-rent ratio terms.

Valuation Methods

Income approach, cost approach, capitalized value, feasibility, and valuation-analysis terms.

Revised on Sunday, June 21, 2026
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