InvestingIntermediate

What Is Rental Yield?

Rental yield measures a property's annual rental income as a percentage of its value or purchase price — similar to cap rate, but sometimes calculated using gross income rather than NOI.

Most useful for: Real Estate Investor · Rental Property Investor
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At a Glance
Rental Yield
Gross Rental Yield=Annual Gross Rental Income÷Property Value×100

Formula

Gross Rental Yield = Annual Gross Rental Income ÷ Property Value × 100
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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