Property Valuation
The 'income approach' to valuation for a residential single-family home used as a rental would typically use which specific method?
AGross rent multiplier (GRM) method✓ Correct
BDirect capitalization method
CDiscounted cash flow analysis
DThe income approach is never used for single-family homes
Explanation
For single-family residential rentals, appraisers often use the Gross Rent Multiplier (GRM) method of the income approach, as it is simpler and data for individual residential rentals is not always detailed enough for full direct capitalization. The GRM is a quick ratio of price to gross rents.
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