Assessment Ratio: Equals the Assessed Value divided by Market Value.

Assessed Value: Equals Market Value multiplied by Assessment Ratio.

Cap Rate: Short for "capitalization rate" and equals the Net Operating Income (NOI) divided by Purchase Price.

Cap Ex: Short for "capital expenditures" and refers to major expenditures that provide long-term improvements to the physical quality of the property required to maintain or add value to the property.

Discounted Cash Flow (DCF) Analysis: A method used to find the present value of future cash flows or to measure the Internal Rate of Return (IRR).

Discount Rate: Equals the opportunity cost of capital or the return expectations for an investment.

Effective tax rate: Equals Actual Taxes divided by Market Value. It also equals Assessment Ratio multiplied by Tax Rate.

Going-in Cap Rate: Cap Rate at the time of purchase.

Going-out Cap Rate: Cap Rate at the time of sale, also known as the reversion or terminal cap rate.

Loaded cap rate: Equals Cap Rate plus Effective Tax Rate.

Market Value: The price at which a property can be sold on the open market.

Mill Rate: The the amount of tax payable per dollar of the assessed value of a property. The mill rate is equal to one-tenth of a cent or $0.001.

Net Operating Income (NOI): Equals all sources of revenue minus operating expenses.

Property taxes: Equals Assessed Value multiplied by Tax Rate.

Tax rate: Equals Mill Rate divided by 1,000.