Estimate a rental property's value from its income, using the income approach — net operating income divided by market cap rate.
The income approach is one of the standard methods appraisers and investors use to value income-producing real estate — it works backward from cap rate: value = NOI ÷ market cap rate, the inverse of the cap rate calculation.
The market cap rate you enter should reflect what similar income-producing properties are actually trading at in your specific area right now, since this figure drives the entire estimate — a small change in assumed cap rate produces a large change in estimated value.
This is one estimation method, not an appraisal — the income approach works best for properties primarily valued for their rental income; it's less reliable for owner-occupied comparables or markets where prices are driven more by appreciation than current income. Treat the output as a planning estimate.
LeasePilot HQ tracks real rent, expenses, and P&L per property — not just estimates.
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