An appraiser's estimate of gross income is based on?

The estimate of gross income used by an appraiser is primarily based on economic rent, which reflects the amount that a property can realistically be expected to earn in the current market conditions, taking into consideration supply and demand. Economic rent is derived from analyzing comparable properties and their rental rates, factoring in the overall market trends and conditions that influence rent for similar properties.

This approach allows the appraiser to make a well-informed estimate that aligns with the market's expectations, rather than hypothetical or future expectations. By focusing on economic rent, the appraiser ensures that the estimate is grounded in actual rental values observed in the market. This provides a more accurate and reliable basis for income projections, which are crucial for determining the value of income-generating properties.

Other options, like market rent, refer to the current rental rates for similar properties in the immediate area but do not necessarily account for the economic influences on those rents. Planned rent and appraised rent are terms that suggest future or subjective estimates, which could deviate from what is realistically achievable in the market. Thus, economic rent stands out as the most appropriate basis for estimating gross income in the context of property appraisal.