Homesites are to be valued at fair market value when the remainder or a portion of the property is valued as land devoted to agricultural use. Such homesites shall be one acre unless the homesite is obviously of greater area. The homesite is to be valued in the same manner as similar residential homesites, with application of land rates which will produce an appropriate indication of full cash value.

The applicable zoning should be considered, but need not be the only criteria for determining homesite area. A market analysis may indicate that the homesite area utilized should differ from local zoning requirements. On a farm, the total homesite area, valued at a primary, or secondary rate, is to be considered the curtilage, or that land area required to support the homesite.

The valuation of tenant homesites should be approached in the same manner as the prime homesite. Assessors should use their judgment as to what value the entire parcel has been enhanced by the presence of the tenant homesites. There will be occasions when the same or greater value should be used for the tenant homesite as that used for the owner's site. All pertinent factors affecting the value of tenant homesites should be considered, including location, access, topography, and available utilities among others. Whether the dwelling is occupied by the owner, a member of his family, or a tenant, does not in itself affect the value.

Any adjustments to a tenant homesite, or second site on a farm, should be made only to reflect the market value, and may be shown by the use of different rates or by percentage factors to the rates used in the area. The reason for such adjustment must be clearly stated on the property record card.

Where an FCMA is in effect and a dwelling is present on less than six (6) acres, the homesite may be considered that area exceeding the five (5) acres required minimum for woodland parcels.