Property Valuation
A Mississippi appraiser applies the income approach to a residential fourplex. The appraiser would most likely use which method?
ACost approach
BGross rent multiplier (GRM) or direct capitalization✓ Correct
CPaired sales analysis only
DOnly the sales comparison approach
Explanation
For small income-producing residential properties (2–4 units), the income approach using GRM or direct capitalization is appropriate. The sales comparison approach may also be used if comparable sales exist.
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