Which method is generally used for valuing income-producing properties?

The Income Approach is the correct method generally used for valuing income-producing properties because it focuses directly on the income that a property is expected to generate. This method involves estimating the potential gross income of the property, deducting vacancies and operating expenses, and then capitalizing the net income at an appropriate rate to derive the property's value. This approach is particularly relevant for properties such as rental buildings, commercial real estate, and investment properties where income generation is the primary concern.

In contrast, the Cost Approach assesses value based on the cost to replace or reproduce the property minus any depreciation, which may not accurately reflect the value of an income-generating property in the market. The Sales Comparison Approach relies on recent sales data of comparable properties, which can be less effective for unique income-producing properties that may not have direct comparisons. The Market Value Approach generally refers to an aggregate assessment of value based on supply and demand dynamics but does not specifically focus on the income capabilities of a property, making it less suitable for this type of valuation.