Income Approach Analysis

The income approach applies only to income-generating rental property. This calculation begins with a review of comparable rental rates and market values in the subject's area. These rates are then used to compute a gross rent multiplier (GRM).

The appraiser then applies this GRM to the subject property's current rental data to determine the value by income approach. This approach will also normally review current operating expenses and average market rental rates in the subject's area.

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Real Estate 101

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