In real estate valuation, the cap rate is defined as the ratio of net operating income to property value, effectively:

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Cap rate expresses the annual return on a real estate asset relative to its value. It is formally defined as net operating income divided by the property’s value. NOI represents the income generated by the property after operating expenses, before financing costs and taxes. So the cap rate shows what percentage of the property's value the property earns each year from its normal operations. Saying it’s the yield on the property per year is a descriptive way to think about the same idea, but the exact mathematical expression is NOI divided by value, which is why that option is the best representation. The other descriptions don’t match: inverting the ratio would give value divided by NOI, and cash flow to investment describes a different measure (cash-on-cash return) that depends on financing and actual cash invested rather than the asset’s stated value.