Vegas is I think 8%.AND, please people, just because you know how to compute a cap rate does not mean you understand how it is used.

How to Calculate Cap RateThe problem with your explanation is that you are creating a cap rate by assuming a purchase value without knowing what the market cap rate is.   

There are a fair amount of high end properties that are pretty much irrelevant from a rental perspective - in a lot of markets there seems to be a cap in what people are generally willing to pay for rent, that is much lower than the cap for purchase prices. 

On one of my properties I pay the water and charge the tenants a flat rate, with a cap that they pay if they go over.

Good advice.And as Leslie said I am looking more for COC and cash flow on a vacation rental instead of a CAP rate.

Second, consider putting  a "cap" on any included utilities.

Thank you for the reply, here where i am i know people on TDY that use AirBNB single rooms/shared house at $30-$60 a night vs a hotel room with a cap of $90 for government rates.  

A cap rate is based on the ONE day financials of a sale!!!

or should I just pay to put a cap on it myself so it does not get any worse? 

Properties are valued based on a factor called a CAP Rate.