Property Valuation
Which of the following best describes 'economic rent' in Mississippi appraisal?
AThe rent actually being paid under an existing lease
BThe rent a property would command in the open market under current conditions (market rent)✓ Correct
CThe rent required to break even on investment costs
DThe maximum rent allowed by local rent control
Explanation
Economic rent (market rent) is the rent a property would likely achieve if leased in the current market under competitive conditions. It may differ from contract rent (the rent actually being paid under an existing lease).
Related Mississippi Property Valuation Questions
- A Mississippi appraiser must remain independent of the transaction. Which of the following would be a prohibited influence on an appraisal?
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