Income Capitalization Rate and Effective Gross Income Multiplier Analysis Services

The Vendor is required to provide for development of an Income Capitalization Rate and an Effective Gross Income Multiplier (EGIM) analysis.
- The primary study will be a market extraction approach developed using sales of traditional housing transactions across the state
- Sales of affordable housing projects should also be considered if applicable.
- Primary lenders of local affordable projects should be consulted to determine current financing rates, along with brokers, owners, appraisers, etc. to determine equity return expectations.
- The capitalization rate should consider typical replacement reserves for this property type, but local practice should also be considered when determining whether to include.
- The report will provide a breakdown of all sales utilized with the indicated cap rate, a written narrative detailing the methodology used and the recommended cap rate ranges for each stratification.
- The analysis will include a list of all sales considered.
- The stratification for the analysis should be the same as outlined for the Income Capitalization rate analysis.
- The individual corresponding expense ratios for the EGIM’s must be included.