The effective gross income calculation primarily accounts for what aspect of a property?

The effective gross income calculation focuses on the potential revenue a property generates while considering various factors that might affect that revenue. The most significant of these factors is vacancies and collection losses.

Effective gross income represents the total income a property could generate, adjusted for potential financial setbacks such as unoccupied units or tenants failing to pay rent. By incorporating these losses, the calculation provides a more realistic view of the property's actual income potential. This understanding is crucial for property owners and investors as it helps in estimating cash flow and making informed decisions about property management and investment strategies.

Other options like property size and style, construction costs and duration, or market demand and trends do not directly reflect the income produced by the property but rather offer different insights into property valuation and development, which, while important, do not play a direct role in the effective gross income calculation itself.