No --- that's not a cap rate!!

Simply put, a "cap rate" is a measure of how quickly your investment is being returned to you.

By your "investment" I mean the value of property that you have purchased. 

by "returned to you" I mean the amount of money that a property generates in a year.

The cap rate formula is . . . Net Operating Income / Purchase Price

So if you buy a property for $160k, rent it for $975 per month, and have $1,500 of annual expenses, you have a cap rate of 6.375%.
( ( 975 * 12 ) - 1500 ) / 160,000 = 6.375%

Care to know more?  Read these . . .
What Is A "Cap Rate"?
Harrisonburg Single-Property Cap Rates
Harrisonburg Multi-Family Cap Rates

Would you like help calculating the cap rate on a property you own, or are considering purchasing?  Call me (540-578-0102) or e-mail me (scott@cbfunkhouser.com).