Analyzing and Reporting the Income Approach in the New URAR

• Review the principles of anticipation and change behind the income approach.  
• Understand the GSE’s requirements when analyzing and reporting a 1- to 4-unit residential income producing property in the new URAR.
• Define the terms dwellings, units, and accessory dwelling unit (ADU) in the new URAR.
• Understand and discuss gross rent multipliers (GRMs).
• Apply and explain market analysis as it relates to tenants (rent) and buyers (GRM).
• Analyze market rent with paired sales and nested paired sales.
• Derive a GRM from market data.
• Calculate an opinion of value.
• Analyze market rent with capitalized cost and expense history analysis.
• Adjust sale prices for cash equivalency using financing and expenditures after sale.
• Understand USPAP requirements when analyzing and reporting a value opinion for a 1- to 4-unit residential income producing property.
• Explain alternate units of comparison.

Program Overview:

Part 1. The Income Approach, the GSEs, and the New URAR

• Introduction

• Principle of Anticipation

• Principal of Change

• The GSEs, Dwellings, Units and ADUs

Part 2. Gross Rent Multiplier

• GRMs

• Selection of GRM Comparables

Part 3. Market Analysis and the Income Approach

• Market Analysis

Part 4. Case Study 1

• Describing the Property

• Rental Analysis and Adjustments

• GRM Analysis and Adjustments

• Reconciliation

Part 5. Case Study 2

• Describing the Property

• Rental Analysis and Adjustments

• GRM Analysis and Adjustments

• Reconciliation

Part 6. Income Capitalization Approach and USPAP

• USPAP Requirements

• Final Thoughts

• Alternate Units of Comparison

The following program is highly suggested but not required: The Appraiser’s Guide to the New URAR. Students who have not completed this 7-hour course and/or are not familiar with basic methodology may be left behind. 

Important Preclass Download Assignment: For the best learning experience, it is imperative that you download the materials prior to class and come prepared to take notes. You can either print the handbook or bring a laptop with materials saved where they are ready to be accessed. 

This class is fast-paced, and class time will not be spent waiting for students who did not download materials prior to class. 

The electronic files may be obtained by logging on to the Appraisal Institute website at https://ai.appraisalinstitute.org/eweb (click on the three horizontal lines to the left of the AI logo and selecting “My AI Account” from the drop-down menu).