7.7.1 Rental Estimates

A. The appraiser must estimate the annual gross income of the subject project including estimates of income from market comparables, rental concessions, and an assessment of the general health of the rental market. The gross income estimate assumes a full occupancy level and reflects rent levels current as of the appraisal date or date of the market study. Also consider the effect that any proposed repairs to the project will have on rents, expenses, and net income; however, not all repairs will increase rents, occupancy, or net income, and/or decrease expenses.