The income capitalization method determines the market value of a property based on the income it generates. It is also referred to as the income approach. The higher the property's value, the more income it generates. In commercial real estate, the income approach is commonly used.
The income approach, also known as the income capitalization approach, is a real estate appraisal method that allows investors to estimate the value of a property based on the income generated by the property. It is calculated by dividing the net operating income (NOI) of the rent collected by the capitalization rate.
To learn more about capitalization, click here.
https://brainly.com/question/7672602
#SPJ4
