Property Valuation
What is the gross rent multiplier (GRM) method used for?
ACalculating depreciation on commercial properties
BQuickly estimating the value of income-producing property using gross rents✓ Correct
CDetermining homestead exemption amounts
DComputing property tax assessments
Explanation
The GRM is a quick income approach that divides the property's sale price by its gross annual (or monthly) rent. It provides a rough value estimate for income-producing properties.
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