Is the Cap Rate on the Listing Right? Stated Cap Rate vs NOI Divided by Price
Most listed cap rates are just the seller’s NOI divided by the asking price. Of 78 active Florida commercial listings that state a cap rate, a net operating income and a price, 67 have a stated cap rate within one point of NOI divided by price, and the median gap is 0.04 point. So the arithmetic is usually fine. What it does not tell you is whether the NOI is right, and that is where the underwriting is.
By Ryan Solberg, Florida Real Estate Broker (BK3354351), MaxLife Commercial. Data snapshot October 29, 2026.
The check
Cap rate is net operating income divided by price. For a listing, divide the stated NOI by the asking price and compare it with the stated cap rate. If they match, the cap rate adds no information beyond the NOI. If they do not, one of the three numbers is wrong, or the cap rate was computed from a different NOI or price than the ones shown.
You can run the arithmetic in the cap rate calculator. Do not treat a cap rate that matches as confirmation of income. It only confirms the division.
What 78 listings show
Method: from the 2,462 active commercial-sale listings in the Stellar MLS feed (distributed through MLS GRID) and the Space Coast MLS feed on October 29, 2026, we kept the 78 that report a cap rate, a net operating income and a list price. Stated cap rate is the feed’s cap rate field; calculated cap rate is NOI divided by list price. Another 68 listings report an NOI but no cap rate, and 9 a cap rate but no NOI; they are not in the 78. Both figures are what the listing agent entered, and the MLS does not verify them.
| Gap between stated and calculated cap rate | Listings | Share of 78 |
|---|---|---|
| Within 0.10 point | 43 | 55% |
| Within 0.25 point | 48 | 62% |
| Within 0.50 point | 56 | 72% |
| Within 1.00 point | 67 | 86% |
| Within 2.00 points | 72 | 92% |
| All with the three fields | 78 | 100% |
Eleven listings are more than a point apart: 5 state a cap rate above the calculated figure and 6 below. Six are more than two points apart. The largest gaps look like data-entry errors, not judgment: one retail listing shows a 5.50% cap rate against a calculated 55.49%, and one warehouse listing 4.24% against 0.35%. We don’t know which field is wrong in any of them.
Stated cap rates by type
These are the cap rates sellers state, not market cap rates, and they come from the small share of listings that publish one. Types with fewer than 5 listings are omitted.
| Property type | Listings (n) | Within one point | Median stated cap rate |
|---|---|---|---|
| Multi-Family 5+ | 18 | 15 | 7.10% |
| Retail | 15 | 13 | 6.30% |
| Mixed Use | 14 | 12 | 7.80% |
| Business | 11 | 9 | 8.42% |
| Office | 8 | 8 | 6.57% |
| Medical Office | 5 | 4 | 6.04% |
For market-level cap rate ranges from other sources, see the Florida cap rates page.
A worked example: when the NOI is the problem
All figures are assumptions for illustration. A listing asks $2,000,000 and states NOI of $150,000, a 7.50% cap rate. The arithmetic matches. Now the buyer’s underwriting:
| Line | Amount |
|---|---|
| Seller’s stated NOI | $150,000 |
| Less: property tax increase after a sale (assumed) | −$12,000 |
| Less: replacement reserve not in the seller’s figure (assumed) | −$10,000 |
| Buyer’s adjusted NOI | $128,000 |
| Cap rate at the $2,000,000 ask | 6.40% |
The listed 7.50% and the underwritten 6.40% differ by 1.10 points, and neither has an arithmetic error. The tax line is the one most often missed; see what a Florida commercial purchase does to the property tax bill.
What to ask for
- The operating statement and rent roll behind the NOI, and whether the figure is trailing, current or projected.
- Which expenses are excluded: management, reserves, vacancy, and property taxes at the seller’s assessed value.
- For a net lease, the lease itself, so you can confirm what the tenant reimburses. Use the NNN deal analyzer or the deal analyzer to rerun the numbers on your own assumptions.
Statistics are computed by MaxLife Commercial from the listing feeds named above and are not statements by either MLS. They describe seller-entered figures on active listings on the snapshot date, and 78 listings is a small sample of the 2,462.
Listings courtesy of Stellar MLS as distributed by MLS GRID
IDX information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
Based on information submitted to the MLS GRID as of October 29, 2026 at 3:17 PM ET. All data is obtained from various sources and may not have been verified by broker or MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
Brevard County listings courtesy of the Space Coast Association of REALTORS® (Space Coast MLS)
IDX information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable but is not guaranteed accurate by the MLS.
© 2026 Space Coast Association of REALTORS®. All information should be independently reviewed and verified for accuracy.
Ryan Solberg, Licensed Real Estate Broker · MaxLife Realty, LLC · FL Lic. #BK3354351 · Equal Housing Opportunity · Terms · DMCA
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