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What is a Yield-Based Property Valuation?

Yield-based property valuation determines property value based on income generation capacity using capitalization rate formula dividing net operating income by market yield rate to estimate property market value.

Calculation Method

  • Net operating income determined
  • Market capitalization rate applied
  • Value = NOI ÷ Cap Rate
  • Reflects income-producing potential

Applications

  • Income property valuation
  • Investment property pricing
  • Commercial property assessment
  • Rental property valuation

Yield-based property valuations determine property value based on income generation capacity using cap rate formula dividing NOI by market yield rate.

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