The income approach looks at the value of a property from an investment perspective. This approach does regard the market valuing of property or the cost to construct it. The income approach looks at the property for the income that it can produce. This approach to value if seldom used for single family homes. Though it is possible for this approach to be used for single family homes, most often it is used for duplexes or multi family residences.
The income approach involves gathering data from the market to evaluate market rents. Market rents can be measure in numerous ways, yet the most common is either square foot or room counts. It also takes in consideration of features such as storage area, parking areas, utilities and furnishings.