The capitalization rate, often just called the cap rate, is the ratio of Net Operating Income (NOI) to property asset value. So, for example, if a property was listed for $1,000,000 and generated an NOI of $100,000, then the cap rate would be $100,000/$1,000,000, or 10%. Importance of Capitalization Rate. The capitalization rate is used to compare between different investment opportunities. For example, if all else equal, a property with a 10% cap rate versus another property’s 3%, an investor is most likely to focus on the property with a 10% cap rate. Cryptocurrency market cap rankings, charts, and more What has COVID-19 done to crypto? 😷 See the events that are Corona #canceled, and what's still ongoing! Our latest Crypto Titan is the inventor of Proof-of-Stake. 🔐 Sunny King tackles Bitcoin's 'energy problem!'