The Income Approach is a method used to estimate the value of an income-producing property. It focuses on the income generated by the property, such as rent, and calculates its present value based on expected future cash flows. This approach is commonly used in real estate appraisal and investment analysis. To apply the Income Approach, appraisers typically use two main techniques: the Direct Capitalization method and the Discounted Cash Flow (DCF) method. The Direct Capitalization method involves dividing the net operating income by a capitalization rate, while the DCF method projects future income and discounts it back to present value.