This paper summarizes the findings of nearly 100 studies concerning the impacts of transit service on nearby property values, and the feasibility of capturing this additional value to finance transit improvements. The results indicate that proximity to transit often increases property values enough to offset some or all of transit system capital costs.
"These potential economic benefits from improved transit services raise intriguing prospects. Is it feasible that public transit systems could be partly funded by capturing a portion of the increased property values? This is consistent with the concept of land value taxation promoted by Henry George (Lincoln Institute). Many planners and economists, including Nobel laureate William Vickrey, suggests that cities could benefit by funding transit system development costs and a major portion of operating costs from land value capture, that is, by taxing a portion of the additional value of adjacent properties that result from transit accessibility."
Thanks to Todd Alexander Litman