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Owner of 20-unit apartment complex disputes $900,000 assessment
Summary
A 20-unit apartment owner told the board the property's income and condition do not support a nearly $900,000 assessed value; assessor staff said income capitalization points to a higher value and suggested the owner may obtain an appraisal for evidence.
An owner of a 20-unit apartment complex told the Marion County appeals board he believes the county’s recently assigned assessment is far higher than market reality and asked the board to reconsider. The owner said he paid roughly $50,000 at closing in 2014 (later reporting an effective outlay of about $13,000), collects about $10,000 in gross rent monthly for the complex, and manages vacancies and maintenance costs that reduce net income.
Board and staff discussion focused on valuation methodology. Assessor staff explained that when comparables are scarce for small apartment complexes, the office relies on an income-capitalization approach: annual net income divided by a market-derived capitalization rate. Using the rough numbers discussed in the hearing (annual net roughly in the tens of thousands), staff and board members said that capitalization could produce values in the high six- to low seven-figure range, which helps explain the assessor’s $900,000 figure. Board members suggested the owner obtain a formal appraisal or provide detailed income-and-expense documentation to substantiate a lower value; the board voted to table the matter to give the owner time to provide evidence.
