In the gross income model, which variable is typically the dependent variable?

In the gross income model, the dependent variable is gross income per unit because it represents the outcome that the model aims to predict or analyze based on other influencing factors. The purpose of the model is to estimate how much income a property can generate, which makes gross income the primary focus.

This income will respond to changes in other independent variables such as construction quality, location characteristics, and overall capitalization rates. By adjusting these independent variables, appraisers can see how each factor influences the gross income generated by the property. As such, understanding gross income as the dependent variable is essential in mass appraisal, as it allows for a structured approach to valuing properties based on their income production potential.