What are the two basic methods of estimating gross income in mass appraisal?

The two basic methods of estimating gross income in mass appraisal are stratification and modeling. Stratification involves dividing properties into groups or strata based on similar characteristics, such as property type, location, or use. This process helps assessors to analyze income data more effectively by ensuring that comparisons are made between similar types of properties, leading to more accurate estimates of gross income.

Modeling, on the other hand, refers to the development of mathematical representations that describe the relationships between various property characteristics and income potential. Through techniques such as multiple regression analysis, assessors can predict gross income based on various independent variables associated with the properties.

By combining stratification with modeling, assessors are better equipped to estimate gross income across a wide range of property types in a systematic and reliable manner. Together, these methods enhance the rigor of the appraisal process and support fair assessment outcomes.