Which type of rental property generates at least 80% of its annual gross rental income from dwelling units?

Residential rental property is defined as property that primarily generates income from dwelling units, such as houses, apartments, condominiums, or similar residential units. To qualify as residential, at least 80% of its annual gross rental income must come from these living spaces. This type of rental property is distinct because it is specifically designed for people to live in, which aligns with the criteria of generating a significant portion of income from homes or similar facilities.

In contrast, commercial rental properties, industrial rental properties, and vacant land rental properties have different primary purposes and income sources. Commercial properties typically involve spaces leased for business operations, industrial properties are used for manufacturing or warehousing, and vacant land does not generate income unless it is leased for specific purposes, which may not be related to residential living. Thus, their income structures differ significantly from those of residential rental properties.