Property Valuation
When appraising income property in New Mexico, 'economic rent' refers to:
AThe actual rent being paid under current leases
BThe rent the property could command in the open market based on current conditions✓ Correct
CThe minimum rent allowed under local ordinances
DRent set by the federal government
Explanation
Economic rent (or market rent) is what a property could command in the open market if rented today, regardless of the actual contract rent. Appraisers use economic rent to estimate income potential.
Related New Mexico Property Valuation Questions
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