Yield Rate

A yield rate is the amount calculated from dividing the yearly net income from a property by its market value. This number is expressed as a percentage. Let’s say that a house has a market value of $350,000, and the yearly net income obtained from this property is $80,000. The yield rate is then calculated through dividing $80,000 by $350,000. In this particular scenario, the yield rate is 22.86 percent. Imagine a particularly large piece of property that includes several different houses, condos and apartments. The market value is the total assessed value of the properties combined. The yearly net income would be all of the rent that is paid toward the owner of the properties throughout the course of one year. This standard applies to commercial properties as well.