The 4-3-2-1 Rule values the section of a property closest to the road at which percentage?

The 4-3-2-1 Rule is a guideline used in property valuation that helps assess the value of different sections of a property based on their proximity to the street. According to this rule, the section of the property that is closest to the road is valued at 40% of the overall property value. This percentage reflects the principle that frontal lots, or those directly adjacent to the road, generally have higher utility and exposure, making them more valuable.

In practical terms, when applying the 4-3-2-1 Rule, the valuation is tiered in such a way that the closest portion draws a premium, while areas further from the road receive progressively lower valuations, with the farthermost section assigned the least value. This structure accounts for factors like accessibility, visibility, and desirability that often enhance a property's market appeal when it is closer to the street.

Thus, recognizing the importance of the proximity to the road in appraisal methodology is crucial for sound property valuation practices.