What is the periodic allowance to recover the investment capital from the investment property's income stream?

The recapture rate is the correct answer because it refers specifically to the periodic amount that an investor sets aside to recover their initial investment in a property. This rate is often calculated based on the expected income generated by the property and reflects the investor's need to recoup their capital over time. It serves as a way to ensure that the investment is not only providing a return but is also accounting for the capital that was initially invested.

In the context of real estate appraisal, the recapture rate is essential for assessing the overall profitability of an investment and estimating the future cash flows. It helps investors to strategically plan how much of the property's income will be allocated to recover their capital, influencing long-term investment decisions and evaluations.

Other terms presented in the question have different implications in financial analysis. The discounted cash flow rate typically refers to the method used to calculate the present value of future cash flows, considering a specified discount rate. The return on investment rate is a broader term that encompasses the overall yield an investor expects to receive from an investment, including both income and appreciation, but does not specifically refer to capital recovery. The reversion rate is associated with the anticipated value of the property at the end of a holding period or the sale of the property, focusing more