Property Valuation
An Iowa property's market rent is $1,200/month but the current tenant pays $900/month under a long-term lease. The difference between market and contract rent is called:
AEffective rent
BBonus rent✓ Correct
CEconomic rent
DRent differential
Explanation
Bonus rent (or rent differential) is the amount by which market rent exceeds contract rent. For the tenant, it represents an economic benefit; for the landlord, it is a below-market rental that may affect property value.
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