Which method converts an estimate of a single year's income into property value in one direct step?

The correct choice is Direct Capitalization because this method involves estimating the value of a property by converting a single year's income into value in a straightforward manner. This is typically achieved by applying a capitalization rate to the net operating income (NOI) generated by the property.

The process is direct and provides a quick estimation of value, which can be particularly useful in assessing properties with stable and predictable income streams. The key aspect of Direct Capitalization is its focus on one year of income rather than projecting multiple years, which distinguishes it from methods that require more complicated calculations, such as Discounted Cash Flow, which evaluates the value based on future income streams over several years.

Yield Capitalization typically involves considering the expected return over a longer period and incorporates aspects like overall investment yield, which adds layers of complexity not present in Direct Capitalization. The Market Comparison approach relies on comparing the subject property to similar properties that have recently sold, focusing on market data rather than income metrics, making it inapplicable for the specific valuation of annual income.