In December 2026, broker Janelle Kim is estimating value for a single-family home in a subdivision made up almost entirely of owner-occupied houses. Very little reliable rental data exists nearby. Which statement is most accurate?
Correct Answer
D) The income approach may be less appropriate because adequate rental data does not exist
The income approach may be less appropriate in an area dominated by owner-occupied one-unit properties when adequate rental data is lacking. Without reliable rental and support data, the resulting income analysis may not be credible or persuasive.
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More Valuation Market Analysis Questions
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Previous Question
In November 2026, a comparable investment property sold for $756,000. Its potential gross income was $55,000, vacancy and collection loss was 5%, and the expense ratio was 43% of effective gross income. Rounded to the nearest whole percent, what overall cap rate does the sale indicate?
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In January 2026, investor Andre Bell studies a small apartment sale that closed at $750,000. The property's stabilized NOI is $60,000 per year. What overall cap rate is indicated by the sale?