Price Per Door

Value From NOI

Work backward from NOI and a market cap rate to value, and see how much a 50 basis point move in cap rates changes the answer.

Implied value$28,800,000
Value per door$130,909
Value at cap +50 bps$26,666,667
Value at cap −50 bps$31,304,348

Small cap rate moves carry large dollar swings. On a $1.8M NOI, 50 bps is worth roughly $2M of value either way, which is why exit cap assumptions deserve as much scrutiny as rent growth.

For education only. Not investment, tax or legal advice.

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