Cap rate (capitalization rate) is a real estate valuation metric: Net Operating Income (NOI) divided by property value. A property generating $100k NOI at a $1.25M valuation has an 8% cap rate. Lower cap rates indicate higher valuations (more competitive markets, lower-risk properties); higher cap rates indicate value opportunities or higher-risk properties.
For real estate investor portals, cap rate is displayed alongside other property-level metrics: occupancy, NOI, DSCR, and projected exit value. LPs evaluating fund performance compare projected vs. actual cap rates on individual deals.