Property fundamentals
Building Value %
Portion of purchase price allocated to depreciable building (not land). Defaults to 80% for SFR; land value varies by market.
Why Building Value % matters
Higher building % = more annual depreciation = more tax savings. In land-cheap markets (Cleveland, Memphis), building can be 85-90% of value. In land-expensive coastal markets (LA, SF), it can be 50-60%. The tax outcome differs meaningfully.