What is going-in cap rate?

What is Going-in Cap Rate?

In real estate investment, the going-in cap rate, often referred to simply as the capitalization rate, is a metric used to estimate the potential return on an investment property. It is calculated by dividing the property's annual net operating income (NOI) by its purchase price or current market value. This rate gives investors an initial estimate of the yield they can expect from the property, not accounting for future income increases, expenses, financing costs, or capital appreciation. The going-in cap is important in real estate analysis, helping investors compare the relative value and return of different properties at the time of acquisition.

Make real-time data your competitive advantage!

Schedule a demo below to see our multifamily analytics platform and APIs in action.