Cap Rate Calculator for Commercial Real Estate

Capitalization rate (cap rate) compresses a multifamily property's income and value into a single percentage. It is calculated as:

Cap Rate = NOI ÷ Property Value × 100

Use the calculator below to solve for either side of the equation — ideal for quick back-of-napkin valuation or comparing markets.

What drives cap rate compression?

• Strong rent growth expectations
• Institutional capital chasing fewer deals
• Low interest-rate environments

Sunbelt cap rate benchmarks (2024)

Dallas Class A: 4.75–5.25% · Houston Class B: 5.50–6.25% · Oklahoma City Value-Add: 6.00–7.00%

Cap rates are market- and asset-specific. Reach out to a TMG advisor for a current market opinion of value.