What Is Income Approach?

The income approach values a property based on the income it generates — typically by capitalizing net operating income at a market cap rate — and is the primary method used for income-producing commercial real estate.

Most useful for: Commercial Investor · Appraiser
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Income Approach
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This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.

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