Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Property Value Formula
User Input
Where to Find This Value
Here's where you can find the value for Property Value:
County Assessor
Your county assessor website shows the assessed market value
Zillow / Redfin Estimate
Online home value estimates based on comparable sales data
Licensed Appraisal
A licensed appraiser provides the most accurate property valuation
Used to Calculate
Property Value is used as an input for these calculations:
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
Property Value anchors some of the most important metrics in your analysis. Cap Rate, LTV, equity position, and insurance costs all reference property value. An outdated or inaccurate value makes every dependent metric unreliable. Reassess annually using comparable sales, appraisals, or income-based valuation.
Detailed Explanation
Property Value is the current estimated market value of the property, which may differ from the original purchase price due to appreciation, depreciation, or market changes. It is used as the denominator in Cap Rate, the basis for property tax and insurance calculations, and the foundation of equity measurements. If not explicitly set, it defaults to the purchase price. Update it periodically to reflect current market conditions.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Price Per Unit
2Purchase price divided by number of units.
Price Per Square Foot
2Purchase price divided by total square footage.
Value Based on Cap Rate
UProperty value estimated by dividing NOI by the cap rate.
Value Based on GRM
UProperty value estimated using the gross rent multiplier.
Cost Approach Value
WEstimated value based on land value plus depreciated replacement cost.
Equity Position Current
2Current property value minus outstanding loan balance.
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