What is the maximum value the Change Property Ratio (CPR) can reach?

The Change Property Ratio (CPR) is a metric used in property appraisal to measure changes in property values over time. It provides a ratio that reflects the relationship between the assessed value of a property and its market value. The maximum value the CPR can reach is 1.00, indicating that the market value and the assessed value are equal. When the CPR is exactly 1.00, it demonstrates an ideal scenario where there is no disparity between assessed values and market values, suggesting a stable and accurate valuation process.

Values above 1.00 would imply that the market value of a property exceeds its assessed value significantly, which indicates a potential undervaluation of properties in the assessment process. Conversely, a CPR below 1.00 suggests that properties are being overvalued compared to the market value. Therefore, 1.00 reflects a balanced ratio, establishing the upper limit of the CPR within standard appraisals.