Land Use & Zoning

The concept of highest and best use in real estate analysis means:

AThe most profitable use regardless of legal restrictions
BThe legally permissible, physically possible, financially feasible, and maximally productive use✓ Correct
CThe use that generates the highest gross income
DThe use that the current owner prefers

Explanation

Highest and best use is the reasonably probable and legal use of vacant land or improved property that is physically possible, legally permissible, financially feasible, and maximally productive — resulting in the highest value.

Related Idaho Land Use & Zoning Questions

Practice More Idaho Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Idaho Quiz →