When the ground rent capitalization method is used, a capitalization rate is applied to ______ in order to arrive at a value.

The ground rent capitalization method focuses on determining the value of a parcel of land based on the income generated from that land. In this context, applying a capitalization rate to the annual income, which is typically derived from the ground lease payments or rent generated from the property, allows appraisers to estimate the land's value. This method is particularly useful when evaluating income-producing properties that are leased on a ground rent basis.

By capitalizing the amount of yearly income, appraisers can convert the income stream into a present value, reflecting what an investor would be willing to pay for the income that the land generates. This approach emphasizes the present worth of future income, thereby ensuring that the valuation aligns with the investment perspective.

The other options do not accurately represent how the ground rent capitalization method operates. For example, simply looking at comparable sales prices or the amount of land being leased does not provide the necessary framework to ascertain the income-related valuation. Similarly, the yearly income of comparable properties, while it can inform market trends and expectations, is not what is being capitalized in this method. Instead, the focus is squarely on the specific income generated by the subject property itself.