Property Valuation
Gross Rent Multiplier (GRM) is calculated as:
AAnnual Gross Income ÷ Property Value
BProperty Value ÷ Monthly Gross Income✓ Correct
CNet Operating Income ÷ Cap Rate
DMonthly Gross Income × 12
Explanation
GRM = Property Value ÷ Monthly Gross Rent (or annual). It is a quick measure of investment value using gross rather than net income.
Related Alabama Property Valuation Questions
- An appraiser who uses paired sales analysis is attempting to:
- When using the sales comparison approach to value a property in Alabama, the appraiser:
- In the income approach, which formula is used to estimate property value?
- Which of the following BEST defines 'market value'?
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- Which organization sets minimum qualification standards for state-certified and licensed real estate appraisers?
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