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Board treats AMH build‑to‑rent portfolios as single economic units, applies 5.5% cap rate across consolidated appeals
Summary
After consolidating 27 AMH appeals, the State Board found purpose‑built build‑to‑rent communities should be valued as single economic units and directed the assessor to apply an income‑approach test substituting a 5.5% capitalization rate, reducing taxable values across the consolidated cases.
The State Board consolidated 27 appeals filed by AMH (cases 26‑128 through 26‑157) and decided the build‑to‑rent communities under appeal should be considered single economic units for full‑cash‑value purposes. AMH representative Mike Churchfield argued these purpose‑built rental communities are marketed and sold as income‑producing assets and pointed to two portfolio sales (Shadow Bay and Elkhorn Point) as market evidence. Clark County representatives emphasized statutory guidance and Nevada precedent that valuation must generally be based on physical characteristics and uniform assessments.
After hearing testimony on income and expense data, rent rolls, and market capitalization rates, the board voted to apply the assessor’s income and expense analyses but substitute a 5.5% capitalization rate to produce market values for the consolidated appeals. The motion passed unanimously; the board instructed assessors to apply the new capitalization rate in computing the taxable values for the affected parcels and to address one case (26‑157) with a specified NOI. Chair Paul Van Crock framed the approach as using the assessor’s methodology with a policy adjustment to reflect local market cap‑rate evidence.
