What do we call a financial strategy for evaluating property investments based on future income expectations?

The financial strategy referred to as "Income capitalization" involves evaluating property investments by assessing the future income that the property is expected to generate. This approach is primarily used in commercial real estate and rental properties, where potential income streams such as rent and other revenues are analyzed to determine the value of the property.

Income capitalization focuses on the relationship between the income a property generates and its value, applying formulas such as dividing the expected net operating income (NOI) by a capitalization rate to arrive at an estimated value. This methodology is valuable for investors as it helps them make informed decisions by projecting future cash flows and understanding the potential return on investment.

In contrast, while "Market analysis" pertains to assessing market conditions and trends, it does not specifically focus on future income expectations. The "Capitalization approach" may refer more generally to the use of capitalization rates in various contexts, without the explicit connection to evaluating future income specifically. "Investment analysis" is broader and may encompass various strategies for evaluating investments, not solely based on income expectations.