Property Valuation

In South Carolina, what is the 'income multiplier' approach in appraisal?

AMultiplying assessed value by the income tax rate
BUsing gross rent multipliers or gross income multipliers to estimate property value based on income✓ Correct
CMultiplying NOI by the capitalization rate
DCalculating income by multiplying the sale price by a factor

Explanation

Income multiplier approaches (GRM — Gross Rent Multiplier; GIM — Gross Income Multiplier) estimate value by multiplying gross income by a market-derived multiplier. They are simple, quick tools for comparing properties but are less precise than full income capitalization.

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