​The Neighborhood Adjustment Index (formerly known as Market Value Index or MVI) represents the blend between the cost and sales comparison approaches to value. The Neighborhood Adjustment Index allows for market factors to influence the residential dwelling’s cost approach valuation. There can be many factors influencing this index such as the overall housing market conditions; the geographic location of dwelling within the jurisdiction or neighborhood; and/or the demand for the specific style or type of home.

The Neighborhood Adjustment Index is applied based on the model type selected for the dwelling.  It is expressed on property record cards (worksheets) as a multiplier, carried to two decimal places.  The index may lower or increase the dwelling’s cost valuation.

Model types are created and assigned to dwellings based on criteria determined by the assessor for a given neighborhood or geographic region.  A few of the more common criteria used for a specific model type would be the dwelling’s style, number of stories, quality, size and/or age. Offices are to maintain documentation detailing the various model types available for each neighborhood that include their description and selected Neighborhood Adjustment Index.​


Neighborhood Adjustment Indexes are determined from sales analyses that are performed at each reassessment cycle. The sales analysis and selection of Neighborhood Adjustment Index will involve the following:

1. Utilizing existing improved arm’s length sales of model types within the geographic region(s) or neighborhood(s).  Depending on the amount of sales available, the assessor may choose to focus on the most recent sales activity or may need to expand the timeframe and region used for comparable sales.

2. The assessor is to select Neighborhood Adjustment Indexes so that the overall sales sample within the selected neighborhood(s) meets the ratio and statistical standards set by the Department.  The selected index may vary between model types. 

3. Where current sales data is insufficient for a particular model type, assessors may either expand their geographic area utilizing sales of similar modeled dwellings from competing neighborhoods or regions; select indexes in use with models of similar quality and/or style; or utilize models where sales existed to develop trends of movement amongst indexes.

Final sales analyses are to be approved by supervision for their adherence to the Department’s ratio and statistical standards.  The approved final sales analyses are to be maintained as part of the reassessment records.

Public sales listings are to provide customers with the sales that were utilized within the sales analysis.  It may also include any additional sales that have occurred after the analysis was approved. 

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