I don't disagree with you in theory. But in practice, there is rarely enough data in a narrowly defined district (that is the proper term for the area from which most appraisers pull data in a 1004MC) for analysis. I think a lot of appraisers define "competing" far too narrowly. Just because it couldn't be used as a comparable in the report doesn't mean it isn't indicitive of trends in the market for your type of property. I do find your point about doing multiple analyses very apt though, as it's something that's appropriate in most cases but rarely performed.