NYC CITY ASSESSOR PROMOTION
EXAM STUDY GUIDE QUESTIONS AND
ANSWERS
1. Which valuation approach is considered most reliable for appraising a 20-unit rent-
stabilized apartment building in NYC?
A. Sales Comparison Approach
B. Cost Approach
C. Development Method
D. Income Capitalization Approach
Answer: D
Conceptual Explanation: The Income Capitalization Approach is the primary method for
valuing income-producing properties like apartment buildings as it reflects the investor’s
perspective on potential revenue.
2. Under the NYC Real Property Tax system, which property type is categorized as Tax Class 1?
A. Commercial retail centers
B. Residential properties with 1 to 3 units
,C. Utility properties
D. Condominiums in buildings with more than 10 units
Answer: B
Conceptual Explanation: Class 1 primarily consists of one, two, and three-family
residential properties, vacant land zoned for residential use in certain areas, and most
condominiums of three stories or less.
3. The ‘6/20’ assessment cap in NYC applies to which tax class?
A. Tax Class 1
B. Tax Class 2
C. Tax Class 3
D. Tax Class 4
Answer: A
Conceptual Explanation: Tax Class 1 properties are subject to assessment caps where the
assessed value cannot increase by more than 6 percent in one year or 20 percent over five
years.
4. In the Income Approach, ‘Potential Gross Income’ (PGI) minus ‘Vacancy and Collection
Losses’ equals what?
A. Net Operating Income
B. Pre-tax Cash Flow
, C. Effective Gross Income
D. Operating Expenses
Answer: C
Conceptual Explanation: Effective Gross Income (EGI) is calculated by taking the Potential
Gross Income and subtracting the estimated loss for vacancies and uncollected rent.
5. Which statistical measure is used in mass appraisal to determine the average percentage
deviation of individual ratios from the median ratio?
A. Coefficient of Dispersion (COD)
B. Price Related Differential (PRD)
C. Standard Deviation
D. Mean Absolute Deviation
Answer: A
Conceptual Explanation: The Coefficient of Dispersion (COD) is the most common
measure of assessment uniformity in mass appraisal, representing the average distance of
ratios from the median.
6. What does a Price Related Differential (PRD) greater than 1.03 typically indicate in an
assessment study?
A. Progressivity (Higher valued properties are over-assessed)
B. High assessment uniformity
EXAM STUDY GUIDE QUESTIONS AND
ANSWERS
1. Which valuation approach is considered most reliable for appraising a 20-unit rent-
stabilized apartment building in NYC?
A. Sales Comparison Approach
B. Cost Approach
C. Development Method
D. Income Capitalization Approach
Answer: D
Conceptual Explanation: The Income Capitalization Approach is the primary method for
valuing income-producing properties like apartment buildings as it reflects the investor’s
perspective on potential revenue.
2. Under the NYC Real Property Tax system, which property type is categorized as Tax Class 1?
A. Commercial retail centers
B. Residential properties with 1 to 3 units
,C. Utility properties
D. Condominiums in buildings with more than 10 units
Answer: B
Conceptual Explanation: Class 1 primarily consists of one, two, and three-family
residential properties, vacant land zoned for residential use in certain areas, and most
condominiums of three stories or less.
3. The ‘6/20’ assessment cap in NYC applies to which tax class?
A. Tax Class 1
B. Tax Class 2
C. Tax Class 3
D. Tax Class 4
Answer: A
Conceptual Explanation: Tax Class 1 properties are subject to assessment caps where the
assessed value cannot increase by more than 6 percent in one year or 20 percent over five
years.
4. In the Income Approach, ‘Potential Gross Income’ (PGI) minus ‘Vacancy and Collection
Losses’ equals what?
A. Net Operating Income
B. Pre-tax Cash Flow
, C. Effective Gross Income
D. Operating Expenses
Answer: C
Conceptual Explanation: Effective Gross Income (EGI) is calculated by taking the Potential
Gross Income and subtracting the estimated loss for vacancies and uncollected rent.
5. Which statistical measure is used in mass appraisal to determine the average percentage
deviation of individual ratios from the median ratio?
A. Coefficient of Dispersion (COD)
B. Price Related Differential (PRD)
C. Standard Deviation
D. Mean Absolute Deviation
Answer: A
Conceptual Explanation: The Coefficient of Dispersion (COD) is the most common
measure of assessment uniformity in mass appraisal, representing the average distance of
ratios from the median.
6. What does a Price Related Differential (PRD) greater than 1.03 typically indicate in an
assessment study?
A. Progressivity (Higher valued properties are over-assessed)
B. High assessment uniformity
