Methodology

Understand BestYieldFinder's investment metrics.

A short guide to what each number means, when to use it, and where to be careful.

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Metric guide Market Score Gross Rental Yield Years to Profit Activity Confidence labels Limits

How to read each metric

The essentials only: meaning, formula, best use, and caveat.

Market Score

A 0-100 relative score for comparing markets inside one country.

Answers

How a market ranks after several BestYieldFinder signals are blended.

Use it for

Quickly comparing markets inside one country.

Caveat

Country-relative: do not compare it as a universal global grade.

S_m=norm(Y,M,I_r,I_s)

Market Score

Investability

How attractive the gross yield is relative to nearby alternatives.

Price momentum

Whether square-meter prices are strengthening or weakening.

Rental demand

I_r

How much rental-side activity is visible in the market.

Sales demand

I_s

How much buyer-side activity is visible in the market.

Normalization

norm

Scales different signals so they can be compared inside one country.

norm means BestYieldFinder scales the component signals against comparable markets in the same country.

Gross Rental Yield

Annual rent compared with purchase price.

Answers

How much gross annual rent a market may produce relative to the purchase price.

Use it for

Screening income potential.

Caveat

Gross, not net: excludes taxes, financing, repairs, vacancy, and closing costs.

Y_gross=12xR_medP_medx100

Gross Rental Yield

Y_gross

Annual rent divided by purchase price, shown as a percentage.

Median Rent

R_med

Typical monthly asking rent in the selected market and segment.

Median Purchase Price

P_med

Typical asking sale price in the selected market and segment.

R_med is monthly rent and P_med is purchase price. The result is gross yield before costs.NoteCity values are a weighted average of segment yields.

Years to Profit

A simple gross payback estimate.

Answers

How many years of gross rent would equal the purchase price.

Use it for

Comparing simple gross payback across similar markets.

Caveat

Not a profit forecast. Net returns depend on costs, taxes, financing, and vacancy.

T_payback=P_med12xR_med

Years to Profit

T_payback

How many years of gross rent would be needed to equal purchase price.

Median Purchase Price

P_med

Typical asking sale price in the selected market and segment.

Median Rent

R_med

Typical monthly asking rent in the selected market and segment.

P_med is purchase price and R_med is monthly rent. The result is a gross payback estimate before expenses.

Rent Activity Index

A signal for rental-market activity.

Answers

How active the rental side of the market appears.

Use it for

Checking whether yield is backed by rental movement.

Caveat

Not a vacancy forecast and not a guarantee a unit will rent quickly.

I_rent=norm(S_rent,F_rent,A_rent)

Rent Activity Index

Active Supply

S_rent

How many rental listings are visible for the selected market.

Freshness

F_rent

Whether the evidence is recent enough to trust.

Activity Evidence

A_rent

Signals that rental listings are turning over or being updated.

Normalization

norm

Scales different signals so they can be compared inside one country.

BestYieldFinder normalizes these into a comparable rental-demand signal.

Sale Activity Index

A signal for sales-market activity.

Answers

How active the buyer side of the market appears.

Use it for

Checking whether a market has visible buyer-side movement.

Caveat

Activity is not the same as liquidity for a specific property.

I_sale=norm(S_sale,F_sale,A_b)

Sale Activity Index

Sale Supply

S_sale

How many sale listings are visible for the selected market.

Freshness

F_sale

Whether the evidence is recent enough to trust.

Buyer Activity

A_b

Signals that buyers are active around the selected location.

Normalization

norm

Scales different signals so they can be compared inside one country.

BestYieldFinder normalizes these into a comparable sales-demand signal.

Price Momentum

A signal for recent square-meter price movement.

Answers

Whether prices are moving up, down, or sideways relative to peer markets.

Use it for

Adding price trend context to yield and activity.

Caveat

Short-term listing changes can be noisy in thin markets.

M_price=norm(ΔC_m2,K_trend)

Price Momentum

Square-meter Price Change

ΔC_m2

Recent movement in asking price per square meter.

Trend Consistency

K_trend

Whether the movement looks consistent rather than one noisy jump.

Normalization

norm

Scales different signals so they can be compared inside one country.

BestYieldFinder normalizes these into a comparable price-momentum signal.

Median Sale Price

Typical asking sale price.

Answers

What a typical property is listed for in the selected market.

Use it for

Sizing the purchase-price level before comparing yield.

Caveat

Asking prices can differ from final transaction prices.

P_med=median(p_i)

Median Sale Price

P_med

The typical asking sale price after cleaned comparable listings are sorted.

Cleaned Sale Price

p_i

One comparable asking sale price from the selected market and segment.

Median

median

The middle value, used because it is less sensitive to extreme listings.

P_med is the median of cleaned asking sale prices p_i for the selected market and segment.

Median Rent Price

Typical monthly asking rent.

Answers

What a typical property asks for monthly rent.

Use it for

Understanding rent level before yield and payback.

Caveat

Advertised rent is not the same as achieved rent after vacancy or concessions.

R_med=median(r_i)

Median Rent Price

Median Rent

R_med

Typical monthly asking rent in the selected market and segment.

Cleaned Monthly Rent

r_i

One comparable monthly asking rent after invalid records and outliers are removed.

Median

median

The middle value, used because it is less sensitive to extreme listings.

R_med is the median of cleaned monthly asking rents r_i matched to the selected market and segment after invalid records and extreme outliers are excluded.

Square meter cost

Typical sale price per square meter.

Answers

How expensive space is in the selected market.

Use it for

Comparing price levels across locations with different unit sizes.

Caveat

Area definitions and listing quality can vary by source.

C_m2=median(p_i/a_i)

Square meter cost

C_m2

Typical asking sale price per square meter in the selected market.

Cleaned Sale Price

p_i

One comparable asking sale price from the selected market and segment.

Usable Area

a_i

The usable square-meter area for the same cleaned listing.

Median

median

The middle value, used because it is less sensitive to extreme listings.

C_m2 is the median of sale price divided by area for cleaned listings with usable square-meter data.

Confidence labels

Confidence tells you how much weight to give a metric.

High

High confidence

Stronger evidence. Better for direct comparison.

Medium

Medium confidence

Usable signal. Check the supporting context.

Low

Low confidence

Thin evidence. Treat as directional.

Low confidence does not mean a market is unattractive. It means the evidence is thinner, so the visible numbers deserve more caution.

Limits

Metrics usually use asking prices, not final transaction prices.
Coverage varies by country, location level, property type, and segment.
Thin-data markets should be treated as directional.
Market Score and activity metrics are comparisons, not performance guarantees.