Property Valuation
A property in Arizona has a gross rent multiplier (GRM) of 120 and rents for $1,800 per month. What is the estimated value using the GRM method?
A$180,000
B$216,000✓ Correct
C$21,600
D$2,160,000
Explanation
Value = Monthly rent × GRM = $1,800 × 120 = $216,000. The GRM is a simple income approach shortcut that does not account for expenses.
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