Real Estate Math
An Illinois property generates gross rents of $36,000 per year and sells for $360,000. What is the gross rent multiplier (GRM)?
A10✓ Correct
B100
C1,000
D12
Explanation
GRM = Sale Price ÷ Annual Gross Rent = $360,000 ÷ $36,000 = 10. The GRM can be expressed in terms of annual or monthly rent; the annual GRM here is 10.
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