Screen the listing cap
Brokers quote a cap off seller pro forma. Rebuild NOI from units, in-place rent, vacancy, and real expenses. The going-in cap is the only number that matters on day one.
Multifamily Tools
Multifamily Cap Rate Calculator
Build NOI from rents and expenses, then price the building at a going-in cap or a market cap. Made for 2–50 unit Georgia apartments — not institutional models.
Calculator
Cap Rate & Value
Purchase
$
Income
$
$
Operating Expenses (Annual)
$
$
$
Repairs, pest, lawn, owner-paid utilities, admin. Typical starting point ≈ $1,100/unit on small Georgia multifamily.
Market comparison
Used to imply value (NOI ÷ market cap) and to solve max price. NW Georgia small multifamily often screens in the mid-6s to high-7s depending on class and condition.
Income waterfall
Gross Potential Rent—
+ Other Income—
Gross Potential Income—
− Vacancy—
Effective Gross Income—
− Taxes—
− Insurance—
− Management—
− Other / Misc—
Total OpEx—
Valuation
Net Operating Income—
Going-in Cap—
Expense Ratio—
GRM—
Price / Unit—
What the market cap says
Implied Value—
vs. Ask—
Enter numbers to read the deal against a market cap.
What people actually use this for
Set a max offer
Switch to Solve Price. Pick the cap you will underwrite to. The implied value is the most you should pay if NOI is real — before you layer debt.
Test value-add
Raise average rent (or drop vacancy / misc) and watch implied value move. That gap is the renovation story. Do not mix going-in and stabilized NOI in the same cap.
Cap rate is unlevered: NOI ÷ price. It ignores loan terms, closing costs, CapEx, and rent growth. Use the Investment Calculator when you need DSCR, cash-on-cash, or a balloon.
Cap rate questions investors actually search
What is a good cap rate for multifamily in Georgia?
There is no universal “good.” Stabilized Class B/C small multifamily in Northwest and metro-adjacent Georgia often trades roughly mid-6% to high-7% going-in, with Class A or core in-town assets tighter and value-add or tertiary product wider. Compare to recent sales of similar unit count and class — not a national average.
Does cap rate include the mortgage?
No. NOI is before debt service. Cap rate is the unlevered yield if you paid cash. Cash-on-cash and DSCR are levered metrics and belong in a full investment model.
Should I use in-place NOI or pro forma NOI?
Going-in cap uses in-place (or trailing) NOI. Stabilized / exit cap uses the NOI you believe after lease-up or renovations. Mixing them inflates value. Run both: current rents for going-in, market rents for the story.
How is implied value calculated?
Implied value = NOI ÷ (market cap ÷ 100). A $70,000 NOI at a 7.0% market cap is worth $1,000,000. If the ask is $1,150,000, you are buying a 6.09% going-in cap — paying above that market screen.