that’s called the income valuation method and is used extensively for commercial property valuation (along with the comparative approach). in residential, it’s

that’s called the income valuation method and is used extensively for commercial property valuation (along with the comparative approach). in residential, it’s usually a combo of cost approach (replacement value of house plus value of land) and comparative. that’s because in many less dense areas, both rental and property comps are hard to come by (to the level of statistical significance).