Property Valuation
A gross rent multiplier (GRM) of 120 is applied to a property with monthly rent of $2,500. What is the estimated value?
A$240,000
B$270,000
C$300,000✓ Correct
D$330,000
Explanation
Value = GRM × Monthly Rent. Value = 120 × $2,500 = $300,000. The GRM is a quick valuation tool that divides the property's value by its monthly (or annual) gross rent.
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