What aspect of real estate appraisal focuses on assessing a property's income potential?

The aspect of real estate appraisal that focuses on assessing a property's income potential is the Income Approach. This method is specifically designed to evaluate the value of an income-generating property by analyzing the amount of income that the property can produce. It takes into account various factors like rental income, operating expenses, and potential future income growth to arrive at a value that reflects the property's ability to generate cash flow.

The Income Approach is particularly useful for investment properties, such as apartment buildings, commercial properties, or any real estate that is intended to generate income. By estimating the net operating income (NOI) and applying a capitalization rate, appraisers can derive a value that is directly linked to the property's income-generating capabilities. Thus, this approach is crucial for investors who want to understand how much return they can expect from an investment in real estate.