Using the Income Approach to Value Your Property

Ready to Learn How Tax Assessors Use the Income Approach to Value Your Property?

The Income Approach to Value is considered important and reliable for commercial and multi-family housing. If you have property of this type it pays to know what the tax assessors are up to!

The Income Approach uses capitalization to convert the anticipated benefits of the ownership of property into an estimate of present value. The income approach is most commonly used in the valuation of commercial, income producing property. It can only be used on single family houses if there is a very active rental market in the neighborhood.

In this guide, you will learn:

• How the income approach to value works
• How the different components of the income approach contribute to the value estimate
• What to look for in the tax assessor's income approach when analyzing your taxable value