US Multifamily Cap Rate Calculator
Derive the cap rate, net operating income and implied value of a US multifamily property, with a NOI and cap-rate sensitivity matrix.
- Class-A Cap
- 4.8%
- Gateway markets
- Class-B Cap
- 5.8%
- Sun Belt average
- Class-C Cap
- 7.2%
- Value-add
Formula & Statutory Rule
Formula
cap_rate = NOI / price × 100
Statutory Rule
NOI = gross_rent − vacancy_loss − operating_expensesRegional Benchmark Reference
| Jurisdiction / Tier | Rate or Limit | Statutory Note |
|---|---|---|
| Class-A | 4.8% | Gateway |
| Class-B | 5.8% | Sun Belt |
| Class-C | 7.2% | Value-add |
Frequently Asked Questions
What cap rate do multifamily properties trade at?
Class-A assets in gateway markets trade near 4.8%, Class-B near 5.8% and Class-C near 7.2%.
What expenses belong in NOI?
Property tax, insurance, maintenance, management, utilities and turnover costs, but not debt service or capital expenditure.
How is vacancy modelled?
Vacancy is applied as a percentage of gross scheduled rent to derive effective gross income.
Can I solve for price?
Yes. Enter a target cap rate and the calculator solves the implied purchase price.