Property Valuation
In Ohio, the 'capitalization of income' method converts what into a value estimate?
AThe annual replacement cost into a value
BThe income stream into a present value using a capitalization rate✓ Correct
CThe assessed value into a market value
DThe historic sales price into a current value
Explanation
Income capitalization converts the property's expected income stream into a present value estimate using a cap rate (direct capitalization) or discount rate (yield capitalization), reflecting what investors will pay for that income.
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