What aspect does "economic rent" take into consideration?

The concept of "economic rent" primarily focuses on the relationship between the rental income a property generates and the competitive market conditions for comparable rental properties. This aspect involves evaluating what similar properties in the area are renting for and how they perform in the market.

When assessing economic rent, one looks at the market dynamics that dictate the supply and demand for rental properties. By analyzing comparable rental properties, an assessor can better understand what renters are willing to pay, which in turn informs what constitutes "normal" rent for a given property type in that location. This understanding helps in determining the fair market value of a property based on current economic conditions rather than mere contractual or historical data.