What is another term for Yield Rate?

Yield rate is commonly referred to as the capitalization rate in real estate and investment contexts. This is because the capitalization rate represents the relationship between the income generated from a property and its current market value or purchase price. It is crucial for investors in assessing the potential return on an investment property.

The capitalization rate helps to estimate the yield of an income-generating asset by dividing the net operating income (NOI) by the property value. Therefore, understanding and using the capitalization rate is fundamentally tied to evaluating the expected earnings compared to the cost of the asset.

While discount rate, mortgage yield, and return on investment rate might be relevant in different financial analyses, they do not specifically correspond to the concept of yield rate in a real estate context, making capitalization rate the key term associated with yield rate.