The overall yield (Yo) is another name for what type of rate?

The overall yield (Yo) refers specifically to the capitalization rate in real estate appraisal, which is a key metric used to assess the potential return on an investment property. The capitalization rate represents the relationship between the net operating income (NOI) of a property and its current market value or purchase price. Essentially, it allows investors to evaluate the expected yield from an investment based on income generated through property operations, factoring in both rental income and expenses.

While discount rates and recapture rates serve distinct roles in different financial analyses, they do not encapsulate the same concept as the overall yield. The discount rate is typically used to calculate the present value of future cash flows, while a recapture rate relates to the return on capital invested. Return, while related, is a broader term that can refer to various types of income generated from investments and does not specifically convey the relationship between income and property value like the capitalization rate does.

In summary, the overall yield (Yo) is effectively synonymous with the capitalization rate, as both represent the anticipated yield from an investment property based directly on its income-generating capabilities.