BRAVE Cap Rate Fields Explained

Cap Rate Fields in the BRAVE Standard

Capitalization rates are among the most scrutinized data points in any commercial real estate appraisal. Lenders, underwriters, and regulators all focus on cap rates as a primary indicator of value reasonableness. The BRAVE standard — created by Valcre — captures cap rate and related valuation parameters in the Value category of its 99-field schema.

Getting these fields right is essential. A misformatted cap rate can delay your appraisal review by days. This guide covers the official BRAVE cap rate and DCF-related fields. For the complete field reference, see our BRAVE 99-Field Reference.

Value.CapRate: Overall Capitalization Rate

This is the going-in cap rate applied to net operating income to derive value via direct capitalization.

Format: Decimal type. The official validator enforces a range of 0% to 20% — a value of 250 (or any value outside this range) will fail validation.

When required: Any time you apply the income capitalization approach using direct capitalization. If you relied exclusively on a DCF analysis, this field may be left blank.

Common error: Entering a cap rate value outside the 0-20% range. The usebrave.org validator enforces range checks on this field.

Value.CapitalizationValue: Direct Capitalization Value

The value derived from direct capitalization of NOI at the stated cap rate.

Format: Decimal (dollar amount).

Value.CashFlowValue: DCF Value

The value derived from discounted cash flow analysis.

Format: Decimal (dollar amount).

Value.DiscountRate: Discount Rate

The internal rate of return used in discounted cash flow analysis.

Format: Decimal type.

When required: Any time you perform a DCF analysis. For property types where DCF is the primary valuation method (hotels, large office buildings, development projects), this field is essential.

Value.TerminalCapRate: Terminal Capitalization Rate

The cap rate applied to the final-year NOI (or the year following the holding period) to calculate the reversion value in a DCF analysis.

Format: Decimal type. Typically 25-75 basis points higher than the going-in cap rate, reflecting increased risk and deferred maintenance at the end of the holding period.

When required: Any time a DCF analysis is performed. A DCF analysis without a terminal cap rate is incomplete.

Important Note on BRAVE Structure

The BRAVE standard captures cap rate and DCF fields within the Value category (24 fields total), not in a separate cap rates section. The BRAVE file also includes a "Primary Income Valuation Method" dropdown at the top of the sheet where you select either "Direct Cap" or "DCF" as your primary method. This selection is separate from the 99 data fields.

For full details on all Value fields (including cost approach, sales comparison, and reconciled values), see the Value section of our BRAVE 99-Field Reference.

Validation Tips

Before submitting, verify these common issues:

1. Range compliance: Value.CapRate must be between 0% and 20% to pass the official validator at usebrave.org.
2. Internal consistency: If you report both a cap rate (Value.CapRate) and an NOI (Income.NetOperatingIncome), the implied value (NOI / cap rate) should approximate your income approach value (Value.IncomeApproach). Note: the official validator does not enforce this cross-check, but lenders will review it.
3. Terminal > going-in: Value.TerminalCapRate should typically be higher than Value.CapRate. If not, document the rationale in your report.

Validate your cap rate fields alongside the full BRAVE file using AppraisalAPI.com. For income field details, see our BRAVE Income & NOI Fields guide. For a complete walkthrough of all 99 fields, read the 99 fields of BRAVE. For valuation conclusion fields that depend on cap rate inputs, see our BRAVE valuation fields guide.