Property Valuation
In the income approach, 'potential gross income' is calculated by assuming:
AAll units are vacant
B100% occupancy at market rents✓ Correct
COnly 50% occupancy
DActual rents collected last year
Explanation
Potential gross income (PGI) is the maximum rent the property could generate if fully occupied at current market rents, before deducting any vacancy or credit losses.
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