The income approach to appraisal is most commonly used for which type of property?

Correct Answer

C) Rental and investment properties that generate income

The income approach estimates value based on the income a property is expected to generate, making it most appropriate for rental and investment properties such as apartment buildings, commercial properties, and other income-producing real estate. It is the preferred appraisal method when a property's value is directly tied to its ability to generate revenue.