Property Valuation
What is 'market rent' versus 'contract rent' in income property valuation?
AThey are the same thing
BMarket rent is what the property could command at current market rates; contract rent is the actual rent specified in an existing lease✓ Correct
CMarket rent applies to commercial properties only
DContract rent is always higher than market rent
Explanation
Market rent is the rental rate a property would currently command in the open market. Contract rent is the actual rent specified in an existing lease agreement.
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