Is my pro forma cap rate of 6.5% realistic given 5.2% actuals on an eight-unit?

[TimothyL]

I'm analyzing a potential investment in a small, eight-unit apartment building in a secondary market, and I'm trying to validate the seller's pro forma with my own cap rate analysis. They're presenting a pro forma cap rate of 6.5% based on projected rents, but when I run the numbers using current market rents and include a more realistic vacancy and maintenance allowance, my calculation drops to around 5.2%. I'm new to commercial real estate and unsure how much weight to give to pro forma versus actuals, and what a reasonable cap rate expectation is for this asset class in today's interest rate environment. Am I being too conservative, or is this a red flag?