Rental yield expresses a property’s rent as a percentage of what it costs. Gross rental yield divides annual rent by the property price: $24,000 of rent on a $400,000 property is a 6% gross yield. Net rental yield goes further, subtracting operating expenses from the rent before dividing, so it reflects what the property actually nets.
Yield is close kin to cap rate; the practical difference is that yield is often measured against the price you paid, while cap rate is usually taken against current value, and “gross” versus “net” changes the answer a lot. Whichever you use, be clear about which version you’re quoting so you’re comparing like with like.
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Written and maintained by the Aptoria editorial team
Editorial method reviewed July 28, 2026. Aptoria reviews scope, source fit, examples, limitations, links, and publication gates. This record does not claim attorney, CPA, lender, appraiser, or other independent professional sign-off.
Related terms
Investing metrics
Capitalization rate (cap rate)
Capitalization rate is annual net operating income divided by a stated property price or value, expressed as a percentage.
Investing metrics
Net operating income (NOI)
Net operating income is effective property income minus normalized property operating expenses, before debt service and owner-level income taxes.
Investing metrics
Gross rent multiplier (GRM)
A sale-price-to-gross-rent screening multiple whose monthly or annual rent convention must be stated.
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