Income Capitalization Rate and Effective Gross Inc

2026-11-03

The Kansas Department of Revenue is seeking competitive proposals from qualified vendors for development of an Income Capitalization Rate and an Effective Gross Income Multiplier ( EGIM ) analysis . The studies will be used by the Kansas Department of Revenue and Kansas county appraisers in the valuation of federally sponsored Affordable Housing projects within the State of Kansas . The vendor will consult with a working group consisting of Property Valuation Division ( PVD ) staff , industry representatives and members of the Kansas County Appraisers Association ( KCAA ). The term of this contract will be for five ( 5 ) years starting on July 1 , 2026 , through June 30 , 3031 . Completed deliverables are due in years one ( 1 ), three ( 3 ) and five ( 5 ). 4 . 2 . Income Capitalization Rate Analysis 1 . The primary study will be a market extraction approach developed using sales of traditional housing transactions across the state and the KC metro area . Sales of affordable housing projects should also be considered if applicable . 2 . In addition to the Direct Capitalization method above , a supporting Band of Investment method shall be developed . 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 . 3 . The stratification for either analysis will be broken into two ( 2 ) groups , location and investment class . a . The location , based on primary , secondary , and tertiary markets as they pertain to Kansas , and also considering the county population . The population data source is at the discretion of the consultant . b . Investment classes should be identified by Class A , B and C using general definitions provided by the Division of Property Valuation prior to the study . 4 . The capitalization rate should consider typical replacement reserves for this property type , but local practice should also be considered when determining whether to include . 5 . 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 . 6 . The analysis will include a list of all sales considered ...

Kansas

2026-04-08