What does PGI stand for in property appraisal?

In property appraisal, PGI stands for Potential Gross Income. This term is crucial because it represents the total income that a property could generate if it were fully leased and fully occupied, without accounting for any vacancies or collection losses. PGI serves as a starting point for estimating the income potential of an investment property, as appraisers use it to analyze a property’s performance and value based on rental income.

An understanding of PGI helps in evaluating the property's financial viability and determining its market value. It can also inform investment decisions and property management strategies. Considering the context of the other options, terms like Permanent Gross Investment or Projected Gross Interest are not standard terminology in property appraisal and do not relate directly to assessing rental income in real estate. Primary Gross Income might imply some form of income but lacks the specific connotation and comprehensive understanding of the potential income from rental properties that PGI provides.