Property Valuation
What is 'market rent' versus 'contract rent' in income property valuation?
AA. They are the same thing for currently occupied properties
BB. Market rent is the current fair market rental rate; contract rent is the actual rent being paid per lease—they may differ if rent is above or below market✓ Correct
CC. Contract rent is set by Hawaii law; market rent is negotiated freely
DD. Market rent only applies to commercial properties; contract rent to residential
Explanation
Market rent is the rent a property would command in the current open market. Contract rent is the rent actually being paid under an existing lease.
Related Hawaii Property Valuation Questions
- In Hawaii, which type of depreciation is curable?
- What is 'effective age' versus 'chronological age' in real estate appraisal?
- What is an 'as-stabilized' value in Hawaii real estate appraisal?
- What is 'absorption analysis' in real estate market research and why is it relevant to Hawaii development?
- What is 'regression analysis' in real estate market studies and how is it used?
- What is the 'income multiplier' approach and how is it used as a quick investment analysis tool in Hawaii?
- What is a 'green building' appraisal and how are energy-efficient features valued in Hawaii?
- In Hawaii, the 'income multiplier' method for valuing a small rental property divides the property value by:
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →