Property Valuation (alternative)
For a Maryland property near the Washington DC suburbs with high demand, a 'market rent' analysis would use:
AThe actual rents paid by current tenants
BThe rent the property would command in the current market if vacant and available for lease✓ Correct
CThe maximum allowable rent under local rent stabilization
DThe HUD fair market rent for the area
Explanation
Market rent is the rent a property would command in the current competitive market — it may differ from contract rent (what current tenants actually pay) especially if tenants are long-term.
Related Maryland Property Valuation (alternative) Questions
- In Maryland, a 'mass appraisal' conducted by SDAT differs from an individual property appraisal because:
- A Maryland appraiser finds that a nearby commercial facility has reduced a residential property's value by $20,000. This is an example of:
- When appraising Maryland waterfront property, the premium over a non-waterfront comparable is:
- The principle of progression in Maryland real estate means:
- In the income approach to appraisal, 'effective gross income' is calculated as:
- Depreciation in a Maryland appraisal (cost approach) includes all of the following EXCEPT:
- A Maryland appraiser notes that the subject property has a 'superadequacy.' This means the property has:
- In Maryland, the 'economic rent' of a property refers to:
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