What is potential gross income in terms of property?

Potential gross income refers to the total income a property could generate at full occupancy and maximum rental rates without accounting for any expenses, vacancies, or downtimes. This figure is crucial for property investors and appraisers, as it sets the baseline for understanding a property's earning capabilities.

When considering this context, the definition provided in option B accurately captures this concept, emphasizing that it involves projected income at full market rent. This understanding allows stakeholders to evaluate a property’s financial viability before considering deductions for expenses, vacancies, or uncollectible rent, which come into play when calculating net operating income.

The other options relate to concepts of income that are adjusted for various factors. For example, income after expenses or operational costs is linked to net income, while adjusting for vacancies connects to net operating income. These distinctions are important in financial modeling and valuation, but they do not represent potential gross income, which is fundamentally about the total expected revenue from a property in optimal conditions.