What should the dependent variable in gross income models be?

In gross income models, the dependent variable typically represents the total income generated before any deductions or expenses. Gross income per unit is the most appropriate choice because it encompasses all incoming revenues from the property, without adjustments for operating costs or taxes, and allows for a more comprehensive understanding of the income-generating potential of a property.

By using gross income per unit as the dependent variable, one is able to directly evaluate the income potential associated with each unit, providing insights that are essential for effective property valuation and assessment. The focus is on the revenue generated exclusively from the operational aspect of the property, making it a direct reflection of its market performance.

Other options, while related to income analysis, do not align directly with the definition of gross income. For instance, net income per unit subtracts expenses, while operating income per property may also adjust for various costs. Average income per resident does not specifically pertain to the evaluation of property income, making it less relevant in this context. Thus, gross income per unit is the most accurate and relevant dependent variable for gross income models.