Form 1025 (Small Residential Income Property)
The appraisal form for 2-4 unit residential properties, incorporating both the sales comparison approach and the income approach. Freddie Mac designates it as Form 72.
Form 1025 is required for duplexes, triplexes, and four-plexes. It includes all the standard residential appraisal sections plus a detailed income approach section with rent schedules, operating expenses, gross rent multiplier analysis, and direct capitalization. The appraiser must analyze each unit separately (bedroom count, bathroom count, rent, condition) and compare the subject's rental income to market rents. Both the sales comparison and income approaches are required.
Related Terms
Income Approach
A valuation method that estimates a property's value based on the income it generates or is expected to generate.
Gross Rent Multiplier (GRM)
GRMThe ratio of a property's sale price to its gross monthly (or annual) rental income.
Uniform Residential Appraisal Report (URAR)
URARThe standard appraisal report form (Fannie Mae Form 1004 / Freddie Mac Form 70) used for most single-family residential mortgage appraisals.
Net Operating Income (NOI)
NOIThe annual income remaining after deducting all operating expenses from effective gross income, but before deducting debt service (mortgage payments) and income taxes.
More in Report Types & Forms
View allForm 1004
The Fannie Mae designation for the Uniform Residential Appraisal Report (URAR), used for appraisals of one-unit properties and units in planned unit developments (PUDs).
Form 1004D (Appraisal Update)
1004DA form used to update a previously completed appraisal to reflect current market conditions and confirm that the property condition has not materially changed.
Form 2055 (Exterior-Only Appraisal)
2055An appraisal report form for exterior-only inspections of one-unit properties.
Form 1073 (Condominium Appraisal)
1073The standard appraisal form for individual condominium units, including analysis of the unit, the condominium project, and common elements.