1.5.4.4. Direct Capitalization. Capitalization of the net operating income shall be at a rate prevailing for the type of property and location. The preferred source of an applicable capitalization rate is from actual capitalization rates reflected by comparable sales. The selection of the capitalization rate is one of the most critical factors to be applied in the income capitalization approach to value. Accordingly, developing capitalization rates from the improved sales used in the sales comparison approach provides the best market support for the rate selected for the subject property. Capitalization rates identified in national publications can be used as support for the estimated capitalization rate selected for the subject but should not be the only source for this determination.