Income Approach

The third way is to evaluate how much income your property would produce if it were rented as an apartment house, a store, or a factory. The assessor must consider operating expenses, taxes, insurance, maintenance costs, and the return most people would expect on your kind of property.

The net income from operation of the property is then capitalized into a value estimate by using a rate providing a return on the property investment. This method of estimating value is seldom used to appraise single family residential properties.