Rent Comparable
A rented property used to support a market rent conclusion — the rental analog of a comparable sale, adjusted for location, size, condition, and lease terms.
Related Terms
Market Rent
The rental income a property would most likely command on the open market, based on analysis of comparable rental properties in the area.
Comparable Sale
A recently sold property that is similar to the subject property in terms of location, size, condition, and features, used as evidence to support the appraiser's opinion of value in the sales comparison approach..
Income Approach
A valuation method that estimates a property's value based on the income it generates or is expected to generate.
More in Income Approach
View allCapitalization Rate (Cap Rate)
Cap RateThe ratio of a property's net operating income to its market value or sale price, expressed as a percentage.
Gross Rent Multiplier (GRM)
GRMThe ratio of a property's sale price to its gross monthly (or annual) rental income.
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.
Effective Gross Income (EGI)
EGIPotential gross income minus vacancy and collection losses, plus other income (laundry, parking, late fees).