For commercial property, two valuation methods are both admissible in a Florida VAB petition. They answer slightly different questions, and a strong petition usually brings both — sales for face validity, income for analytical depth.
The sales approach
Comparable sales of similar properties, time-adjusted to the lien date, and weighted by similarity. Best when there are 3+ recent arm's-length sales within the use code and submarket. Magistrates default to it because it's empirical and easy to verify.
The income approach
For income-producing property, value = net operating income (NOI) / capitalization rate. NOI is the property's annual rent minus operating expenses (taxes, insurance, repairs, management); cap rate is the market's required yield, observable from sales of similar income-producing properties.
When the income approach helps
Hotels, office buildings, and stabilized multifamily — where rent and occupancy are observable and reliable. Industrial flex space if leases are long-term and at-market. The income approach is also the best counter when the PA over-relies on physical attributes (size, age) instead of economic productivity.
When the income approach hurts
Owner-occupied commercial (no rental history), retail with significant tenant turnover, or properties where the market cap rate isn't observable. In these cases an income-approach argument can be picked apart by the PA's counsel; lean on sales.
The cost approach (briefly)
A third method — replacement cost minus depreciation, plus land value — is occasionally used for special-purpose property (warehouses, hospitals, gas stations). Rarely needed for a VAB petition unless your subject has unusual physical characteristics.
Reconciliation
A polished DR-486 narrative reconciles the methods explicitly: "Sales suggest X, income suggests Y; we weight sales 70% / income 30% because [reason]." The magistrate will follow your math if you show your work.