Which method values vacant land based on income generated in a given year?

The method that values vacant land based on the income generated in a given year is Ground Rent Capitalization. This valuation approach considers the potential income the land can produce if leased or rented. Specifically, it involves estimating the achievable ground rent and capitalizing that income to determine the value of the property.

Ground Rent Capitalization is particularly useful for vacant land that is not yet developed but has the potential to generate income through leasing or other means. By assessing the expected rental income and calculating its present value, appraisers can derive a value that reflects the land's income-generating capacity.

Other methods mentioned, such as the Cost Approach, typically involve calculating the cost to replace the land and improvements, while the Direct Comparison and Sales Comparison methods analyze recent sales of comparable properties, neither of which focuses specifically on the income generated in a given year.