What does the assessed value divided by the market value yield?

The assessment rate is derived from dividing the assessed value of a property by its market value. This ratio indicates the percentage of the market value that is being used to determine property taxes. The assessed value is the value assigned to a property for the purposes of taxation, while the market value represents what the property would likely sell for in an open market.

Calculating this division provides a clear metric for the local government's evaluation of property and the effectiveness of its tax system. Understanding this ratio is essential for real estate professionals, as it affects property valuation, tax obligations, and can influence selling prices or buying decisions.

The other choices represent different concepts. The tax rate refers to the percentage applied to the assessed value to calculate taxes owed. The capitalization rate is commonly used in income-producing properties to determine potential returns on investment. The rental rate refers to the price charged for leasing a property. Each of these has its own specific use and context within real estate but does not directly relate to the calculation of the assessed versus market value.