How the Rental Housing Valuation Tool Works
Users enter basic information about a property including its location, income and expenses, number of rental units and the year and quality of construction. The automated system then determines and displays the stabilized net operating income of the property. Users then have an opportunity to adjust the automated income and expense assumptions.
Once the user determines the stabilized net operating income of the property, the valuation tool assigns an appropriate cap rate. The cap rates and valuations result from an analysis of large amounts of data about comparable rental properties. The valuation conclusions reflect local market conditions for the class, size and type of property being evaluated.