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Income Approach -- continued <br />Direct Capitalization includes the two methods noted previously and it uses market rates, which are <br />considered to be the most reliable indicators because they represent the actual market. In this situation, <br />market data was considered to be sufficient to provide a reliable indication of value. <br />BAND OF INVESTMENT <br />NOI <br />OAR <br />Indicated value, rounded <br />$49,540 <br />8.20% <br />$605,000 <br />RATE EXTRACTION <br />NOI <br />OAR <br />Indicated value, rounded <br />$49,540 <br />8.00% <br />$620,000 <br />The Band of Investment value is an estimate based upon current financing scenarios, which can vary. <br />The rate extraction method is based upon actual market, and is given primary weight. <br />Indicated Value - Income Approach (fee simple, with <br />public sewer) <br />$620,000 <br />Less cost to connect to public sewer: <br />($50,000) <br />Indicated Value - Income Approach (fee simple, without <br />public sewer) <br />$570,000 <br />