Property Valuation
Net income ratio (NIR) is calculated as:
ANOI ÷ Effective Gross Income✓ Correct
BNet Income ÷ Total Investment
CGross Income ÷ Property Value
DOperating Expenses ÷ Gross Income
Explanation
Net Income Ratio (NIR) = NOI ÷ EGI. It represents the percentage of effective gross income remaining after operating expenses.
Related Alabama Property Valuation Questions
- In the sales comparison approach, the subject property is compared to which of the following?
- In the sales comparison approach, adjustments are made to the comparable properties to account for differences. If a comparable has a feature the subject property lacks, the adjustment to the comparable is:
- In the income approach, which formula is used to estimate property value?
- The income approach to appraisal is MOST commonly used for:
- The principle of 'highest and best use' in appraisal refers to the use that is:
- Functional obsolescence in property valuation refers to:
- In Alabama, which approach to value is most appropriate for a single-family home in a residential neighborhood?
- An appraiser using the income approach divides the net operating income by the capitalization rate to determine:
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