renting out a 2nd property

I’m reading conflicting info - any ideas please?
Claimant owns 2nd property which they rent out - at first glance, value of property is over 16K therefore no IS due.
But then checking DMG - paragraph 29737 - an example there states rental income classed as capital.
Confused!

The major factor, of course, which affects realisable value, is the security of tenure of any tenants in the property and it is this which needs particular investigation.

In the olden days, when there were such things as regulated tenancies (ah, happy days), the rule of thumb was that a property with a sitting secure tenant had a market value of roughly half what it would have been with vacant possession. So a tenancy which is less secure than a regulated tenancy - almost all of them these days - ought to be worth more than 50% of vacant possession value (after the amount of any mortgage, of course).

“regulated tenancies (ah, happy days)”

You almost make me long for the long hot summer that was the early to mid eighties; cruise missiles, the miners strike, the Falklands war, the assault on the trade unions, mass unemployment, inner city riots, giros failing to arrive, sitting in Supp Ben offices for hours because said giro failed to arrive, big hair, mullets, lycra, stupid clothes, power dressing, trashy American TV, jumpers for goalposts; aah!