Real Estate Math

A property has a gross monthly rent of $2,400. Using a gross rent multiplier (GRM) of 120, what is the estimated property value?

A$240,000
B$264,000
C$288,000✓ Correct
D$312,000

Explanation

Property Value = Gross Monthly Rent × GRM. $2,400 × 120 = $288,000. Using the values given ($2,400), apply the appropriate formula.. The correct answer is $288,000.. This is a common calculation on the Idaho real estate exam.

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