Valuation Inputs
Value at Different Cap Rates
At 6.5% → $2,846,154
At 7.0% → $2,642,857
At 7.75% → $2,387,097
At 8.5% → $2,176,471
Estimated Property Value
$2,551,724
Valuation Insights
Based on a 7.25% cap rate, this property would be valued at approximately $2.55 million using the income approach.
Market Context for Northwest Georgia:
• Class A properties: 5.75% – 6.75%
• Class B multifamily: 6.75% – 8.0%
• Value-add / Class C: 8.0% – 9.5%
Lower cap rates = higher property values for the same NOI.
• Class A properties: 5.75% – 6.75%
• Class B multifamily: 6.75% – 8.0%
• Value-add / Class C: 8.0% – 9.5%
Lower cap rates = higher property values for the same NOI.
The Income Approach (Cap Rate Method) is the most common valuation method for stabilized income-producing properties. Always cross-check with sales comps and replacement cost.