What term refers to the use of a property that maximizes its yield?

The term that refers to the use of a property that maximizes its yield is "highest and best use." This concept is fundamental in real estate appraisal and investment, as it embodies the idea that land or property should be used in a way that generates the greatest return on investment.

Highest and best use involves evaluating the most profitable legal use of a property that is physically possible, financially feasible, and maximally productive. This evaluation takes into account current zoning, market demand, and the physical characteristics of the property. By aligning property use with its highest and best potential, investors and developers can maximize their yields and optimize financial performance.

In contrast, market value pertains to the estimated price at which a property would sell under normal conditions, effective yield refers to the actual income received after expenses, and gross income is simply the total income generated before deducting any costs. These terms, while related to property and income, do not specifically denote the optimal use that maximizes yield as "highest and best use" does.