What is the maximum potential rental income based on comparable properties in the market?

The correct choice is market rental income because this term refers to the rental income that properties similar to the one in question are currently achieving in the open market. It's determined by analyzing comparable properties that have a similar use, type, and location to gauge what rent can be expected.

Market rental income reflects the prevailing rates that tenants are willing to pay for similar spaces in the area, considering factors such as amenities, size, and condition of the property. This income serves as a benchmark for setting rental prices and assessing a property's income-generating potential.

In contrast, projected rental income isn't strictly based on current market conditions but could include estimates of what the property could earn in the future, which may not accurately reflect the present market dynamics. Effective rental income considers potential income adjustments, such as vacancy rates and collection loss, which means it may not represent the full market potential. Contract rent refers to the actual rent agreed upon in a lease, which may differ from what is obtainable in the market due to various factors like negotiations or long-term agreements. These distinctions highlight why market rental income is considered a more accurate measure of maximum potential income based on current comparable properties.