holding period return (HPR) - the return on investment of a capital asset such as real property over the time it has been owned. The formula is [(capital gain or loss + rental income) ¸ purchase price]. For example, an apartment building purchased for $500,000 that generated yearly rental income of $50,000 and sold exactly one year later for $550,000 would have a HPR of [($50,000 + $50,000) ¸ 500,000], or 20%.

© 2004 Bella Vista Publishing Company, Inc.  ISBN 0-9718225-0-6

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