Which type of properties is primarily evaluated using the net income ratio technique?

The net income ratio technique is specifically utilized for properties that generate income, which includes a broad range of income-producing properties. This method assesses the value of a property based on its ability to generate income, which is a critical aspect when evaluating properties used for investment purposes.

Income-producing properties are typically characterized by their capacity to provide returns to owners or investors through rent or lease agreements. The net income ratio technique involves calculating a property's net operating income (NOI) and comparing it to its value, allowing assessors to determine whether the income it produces supports its assessed value.

Other property types, such as residential, commercial, or industrial properties, can have characteristics of income-generating potential, but the net income ratio technique is not limited to these categories. Thus, the correct understanding encompasses the broader classification of income-producing properties, which can include varied real estate markets where income generation is a primary factor in valuation.