Cap Rates From 3% to 12%, in Real Numbers

The same property is worth very different amounts at different cap rates, and needs very different rent to justify the same price. This table shows both on a $300,000 rental. Pick a cap rate for the full breakdown.

$300,000 property, 5% vacancy, taxes 1.2% and insurance 0.5% of price, 18% of collected rent for maintenance, reserves and management. Value column uses $20,000 of NOI.
Cap rate	NOI needed at $300,000	Rent needed	Value of $20k NOI	Read as
3%	$9,000	$1,510	$666,667	Low
4%	$12,000	$1,830	$500,000	Moderate
4.5%	$13,500	$1,990	$444,444	Moderate
5%	$15,000	$2,150	$400,000	Moderate
5.5%	$16,500	$2,310	$363,636	Moderate
6%	$18,000	$2,470	$333,333	Solid
6.5%	$19,500	$2,630	$307,692	Solid
7%	$21,000	$2,790	$285,714	Solid
7.5%	$22,500	$2,955	$266,667	Solid
8%	$24,000	$3,115	$250,000	High
9%	$27,000	$3,435	$222,222	High
10%	$30,000	$3,755	$200,000	Very high
12%	$36,000	$4,395	$166,667	Very high

The example property at $2,550 rent has a 6.2% cap rate. Run your own in the cap rate calculator, or see how cap rate moves with price on the purchase price pages.