Property Valuation
In Michigan appraisal, 'market rent' differs from 'contract rent' because:
AThey are identical terms
BMarket rent is what the property could command on the open market; contract rent is the amount actually specified in the current lease✓ Correct
CMarket rent is always higher than contract rent
DContract rent applies only to commercial leases
Explanation
Market rent is the competitive, open-market rental rate a property would command. Contract rent is the rent specified in the current lease, which may be above or below market depending on when the lease was signed and market changes since then.
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