Cap rate determination - Section 8

[William Barr]

How is a commercial lender going to determine the cap rate of a SFH section 8 portfolio? Say I built a portfolio of 10 SFH rentals, all rented via section 8. Say each house is bought individually for $75k (in a non-appreciating market) and portfolio NOI is $100k. If I took this portfolio to a commercial lender, assuming I've stabilized rents and all tenants are locked in a 12+ month lease, how would they value it?

Would it be based on comps - and therefore ~$750k?

If based on income, what cap rate would be applied in valuation? For instance, $100k NOI / 10% cap = $1M

If a mix of comp/income, what does that generally look like?

Thanks!