# Tex. Tax Code § 23.012: INCOME METHOD OF APPRAISAL

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.012

## Section

- **Citation:** Tex. Tax Code § 23.012
- **Heading:** INCOME METHOD OF APPRAISAL
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code tx / Chapter 23 / Section 23.012

## Text

(a) If the income method of appraisal is the most appropriate method to use to determine the market value of real property, the chief appraiser shall:

(1) analyze comparable rental data available to the chief appraiser or the potential earnings capacity of the property, or both, to estimate the gross income potential of the property;

(2) analyze comparable operating expense data available to the chief appraiser to estimate the operating expenses of the property;

(3) analyze comparable data available to the chief appraiser to estimate rates of capitalization or rates of discount; and

(4) base projections of future rent or income potential and expenses on reasonably clear and appropriate evidence.

(b) In developing income and expense statements and cash-flow projections, the chief appraiser shall consider:

(1) historical information and trends;

(2) current supply and demand factors affecting those trends; and

(3) anticipated events such as competition from other similar properties under construction.

## Nearby sections

- [Tex. Tax Code § 23.01 § 23.01. APPRAISALS GENERALLY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.01.md)
- [Tex. Tax Code § 23.03 § 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES SUBJECT TO LIMITATION ON APPRAISED OR TAXABLE VALUE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.03.md)
- [Tex. Tax Code § 23.011 § 23.011. COST METHOD OF APPRAISAL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.011.md)
- [Tex. Tax Code § 23.11 § 23.11. GOVERNMENTAL ACTION THAT CONSTITUTES TAKING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.11.md)
- [Tex. Tax Code § 23.012 § 23.012. INCOME METHOD OF APPRAISAL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.012.md)
- [Tex. Tax Code § 23.12 § 23.12. INVENTORY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.12.md)
- [Tex. Tax Code § 23.13 § 23.13. TAXABLE LEASEHOLDS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.13.md)
- [Tex. Tax Code § 23.013 § 23.013. MARKET DATA COMPARISON METHOD OF APPRAISAL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.013.md)
- [Tex. Tax Code § 23.014 § 23.014. EXCLUSION OF PROPERTY AS REAL PROPERTY.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.014.md)
- [Tex. Tax Code § 23.14 § 23.14. APPRAISAL OF PROPERTY SUBJECT TO ENVIRONMENTAL RESPONSE REQUIREMENT.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.14.md)
- [Tex. Tax Code § 23.17 § 23.17. MINERAL INTEREST NOT BEING PRODUCED.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.17.md)
- [Tex. Tax Code § 23.18 § 23.18. PROPERTY OWNED BY A NONPROFIT HOMEOWNERS' ORGANIZATION FOR THE BENEFIT OF ITS MEMBERS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.18.md)
- [Tex. Tax Code § 23.19 § 23.19. PROPERTY OCCUPIED BY STOCKHOLDERS OF CORPORATION INCORPORATED UNDER COOPERATIVE ASSOCIATION ACT.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.19.md)
- [Tex. Tax Code § 23.20 § 23.20. WAIVER OF SPECIAL APPRAISAL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.20.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Ctx_C23_S23.012. Check the current official text before relying on it. Not legal advice.