ValuationAppraisal MethodsEASY
The income approach to appraisal is most appropriate for which type of property?
Correct Answer
C) Income-producing rental properties
The income approach to appraisal is most appropriate for income-producing properties such as apartment buildings, commercial properties, and rental properties. It estimates value based on the net operating income (NOI) the property generates, divided by the capitalization rate.
Answer Options
A
Owner-occupied single-family homesB
Vacant land parcelsC
Income-producing rental propertiesD
Historic landmark buildingsWhy This Is the Correct Answer
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Related Topics & Key Terms
Related Topics:
net operating incomecapitalization ratesales comparison approachcost approachinvestment property
Key Terms:
income approachnet operating incomecapitalization raterental propertyinvestment property
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