Which of the following terms refers to the probable rent in a competitive market?

The term that refers to the probable rent in a competitive market is commonly known as economic rent. This concept represents the rental income that a property could realistically command, considering the prevailing market conditions and demand for similar properties. Economic rent provides an estimation of what would be a fair and competitive price that tenants would be willing to pay in a free market environment.

This measurement is crucial for assessors and real estate professionals as it helps to establish a benchmark for property valuation, enabling them to make informed decisions regarding investment and pricing strategies.

In contrast, contract rent refers to the actual rental payment specified in a lease agreement between a landlord and tenant, which may differ from the market-driven economic rent. Potential gross income represents the total income a property could generate if fully rented out at market rates, without accounting for vacancies or collection losses. Actual rent is the income received from tenants, which also can be lower than the economic rent due to various factors such as tenant negotiations or market conditions.

Thus, economic rent stands out as the term that best captures the concept of probable rent in a competitive market.