Mills Act Assessment
Income Approach to Value |
|
Normal Assessment
Market Approach to Value |
| Gross Income:
($850.00/mo x 12) = $10,200.00 |
|
| Vacancy & Col
loss: (5%)
= -$510.00 |
1. Assessor uses Sale Comparison
Approach using sales of similar properties appropriately adjust for differences between
comparable and the subject property. |
| Effective Gross:
= $
9,690.00 |
2. Sales indicate market value of
$150,000.00 |
|
|
| Expenses: |
|
Maintenance: $600.00
|
|
Insurance: $400
|
|
| Total Expenses:
= -$100.00 |
|
| Net Operating Income
= $8,690.00 |
|
|
|
| Capitalization Rate |
|
Interest
Rate 7.50
|
|
Risk
Rate
4.00
|
|
Depreciation Rate 2.00
|
|
Tax
Rate
1.00
|
|
| Total Cap
Rate 14.50% |
|
|
|
| Capitalization of Net Income: |
|
| NOI/Cap Rate
$8,690.00/.1450 = $59.931 |
|
|
|
| Assessed Value = $60,000.00 |
Assessed Value = $150,000.00 |
| Estimated Property Taxes
$600.00 |
Estimated Taxes = $1,500.00 |
