Which valuation approach relies on the potential income a property can generate?

The Income approach is the correct choice because it specifically focuses on the income-generating potential of a property. This method is particularly relevant for investment properties, such as rental apartments or commercial buildings, where the future income stream generated by the property plays a crucial role in determining its overall value.

By analyzing the property's capacity to generate revenue, appraisers employ various calculations, including gross rental income, operating expenses, and capitalization rates, to arrive at an estimated value. Essentially, the Income approach reflects how much an investor would be willing to pay for a property based on the expected return on investment.

In contrast, the Market approach relies on the sale prices of comparable properties, the Cost approach evaluates the cost to replace or reproduce a property minus depreciation, and the Comparative sales approach is often synonymous with the Market approach, as it also assesses value based on recent sales of similar properties. These alternatives do not focus primarily on the income potential of the property, making the Income approach the most appropriate method when considering the revenue aspect.