In which part of the appraisal report would you expect to find discussions on vacancy and rental factors mentioned in the missing market analysis section?

The Income Approach to valuation is particularly relevant when discussing factors such as vacancy rates and rental income, as it directly examines how income-producing properties generate revenue. In this part of the appraisal report, appraisers analyze the potential income from property, including gross income and operating expenses, which are vital for determining a property's value. This analysis includes adjusting for vacancy rates—reflecting the percentage of time a property is expected to be unoccupied—and reviewing rental rates for comparable properties in the market. These aspects are significant as they impact net operating income and, consequently, the valuation of the property using the Income Approach.

The other sections mentioned, such as improvement data, property history, or the Cost Approach, do not focus on the immediate financial performance and potential income derived from the property, making them less relevant to discussions on vacancy and rental factors.