Property Valuation

A Nebraska appraiser determines a property's gross annual income is $60,000 with a 5% vacancy. The effective gross income is:

A$55,000
B$57,000✓ Correct
C$57,700
D$60,000

Explanation

Effective Gross Income = Gross Income × (1 − Vacancy Rate) = $60,000 × (1 − 0.05) = $60,000 × 0.

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