What is the formula used to calculate income from property value?

The formula used to calculate income from property value is correctly represented as Income = R x V, where "R" stands for the income rate (such as the capitalization rate) and "V" represents the property value. This formula reflects how income generated from a property relates directly to its value and the income it produces, allowing real estate professionals to assess potential income levels based on these factors.

This formula is fundamental in real estate investment analysis, enabling investors to estimate the projected income from an investment property by multiplying the expected rate of return by the property's current value. Understanding this relationship is crucial for making informed decisions about purchasing, holding, or selling real estate assets.

The other choices do not accurately represent the standard calculation for determining income from property value. Income = Cost x Rate might apply in some contexts but does not specifically relate to property valuation and income generation. Income = Value - Tax and Income = Tax x Rate relate to taxation rather than income calculation from property.