market
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What Is a Good Cap Rate?
What Is a Good Cap Rate? Quick answer (featured snippet) A cap rate is a way to value a property: Cap rate = NOI / Purchase Price. In 2024–2025, a “good” cap rate depends on risk: Core: ~4.5%–6%, Value‑add: ~6%–8%, Opportunistic: 8%+. Use this as a snapshot, then layer in market trends, appraisal comparables, and…