Investment Properties

How do I calculate cap rate on a rental?

By Bob Millaway July 26, 2026

Short Answer

Cap rate is calculated by dividing a property's net operating income (NOI) by its current market value or purchase price. For example, if a property generates $24,000 in annual NOI and costs $300,000, the cap rate is 8%. In South Jersey, cap rates typically range from 6% to 10% depending on the town and property type. Higher cap rates generally mean higher returns but also higher risk. Full answer page coming soon.

Full answer page coming soon. This page will provide a comprehensive guide to calculating and interpreting cap rates for South Jersey investment properties.

Bob Millaway

Bob's Advice

Redfin Senior Agent · AI Certified Agent

Full answer page coming soon. Cap rate is just one metric. I can help you analyze the full financial picture of any investment property you are considering.

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