Property Valuation
In Montana, a 'market rent' appraisal for a rental property determines the rent that the property would command:
ABased on the current lease rate, regardless of market conditions
BIn the open market between a knowledgeable landlord and a knowledgeable tenant, with neither under compulsion, in an arm's-length transaction✓ Correct
CBased on the government's HUD fair market rent schedule only
DBased on the property's assessed value
Explanation
Market rent is the rent a property would command in the open market between a knowledgeable landlord and tenant dealing at arm's length, with neither under undue pressure, similar to the definition of market value but for lease rates.
Related Montana Property Valuation Questions
- The principle of progression holds that:
- The cost approach is MOST reliable for valuing:
- In Montana, when a commercial appraiser must estimate value for a 'leased fee' interest versus a 'leasehold' interest, they are valuing:
- In Montana, when appraising a property that is encumbered by a long-term below-market lease, the appraiser distinguishes between:
- In the income approach to valuing a Missoula apartment complex, the gross rent multiplier (GRM) is calculated by:
- The principle of 'highest and best use' in Montana appraisal means:
- In Montana, 'market value' for appraisal purposes is defined as:
- In Montana, when an appraiser uses 'external comparable sales' from outside the immediate market area, they must:
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