This article describes a segmentation technique based on the use of geographically weighted regression (GWR) which could be applied within the mass appraisal environment.
MRA in assessment
Includes technical notes on linearization and need for hold-back sample.
Borst, R. A., & McCluskey, W. J. (2008). Using geographically weighted regression to detect housing submarkets: modeling large-scale spatial variations in value. Journal of Property Tax Assessment & Administration, 5(1), 21-54. Retrieved from https://researchexchange.iaao.org/jptaa/vol5/iss1/2