Property Valuation
In the income approach, potential gross income (PGI) is the income a Kentucky property would generate if:
AThe property were 90% occupied
BThe property were 100% occupied at market rents✓ Correct
COnly current tenants remained at existing rents
DThe property were sold rather than rented
Explanation
Potential gross income (PGI) represents the maximum income a property could generate at 100% occupancy with market-rate rents, before deducting vacancy, credit loss, or expenses.
Related Kentucky Property Valuation Questions
- A Kentucky appraiser who identifies a comparable sale that occurred 18 months ago in an appreciating market should:
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