Calculating Just Compensation

From the LII: 

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From Investopedia

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Just compensation refers to the compensation individuals receive when their property gets seized by the government for public use. For example, when the national highway system was constructed in the 1950s, many homeowners had their property seized because the government needed the land to build the interstate highway system.

The just compensation remedy is provided by the Fifth Amendment's Takings Clause and is usually considered to be fair market value.1 However, what the government considers just compensation may not be regarded as "just" by the person whose property is seized. The government’s ability to take private property for public use is called eminent domain.

Fair Market Value.

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What Is Fair Market Value?

In its simplest sense, fair market value (FMV) is the price an asset would sell for on the open market. Fair market value has come to represent the price of an asset under the following usual set of conditions: prospective buyers and sellers are reasonably knowledgeable about the asset, behaving in their own best interest, free of undue pressure to trade, and given a reasonable time period for completing the transaction. Given these conditions, an asset's fair market value should represent an accurate valuation or assessment of its worth. The term is commonly used in tax law and the real estate market.