Real Estate Math
An Iowa investor purchases a rental property for $150,000 and receives annual gross rents of $18,000. The gross rent multiplier (GRM) is:
A6.0
B8.33✓ Correct
C12.0
D0.12
Explanation
GRM = Purchase Price / Gross Annual Rent = $150,000 / $18,000 = 8.33.
Related Iowa Real Estate Math Questions
- An Iowa farmland investor purchases 240 acres at $9,500 per acre. What is the total purchase price?
- A 1/16 section of land (one sixteenth of a section) in Iowa contains how many acres?
- What is the area in square feet of an Iowa living room that measures 18 feet by 22 feet?
- An Iowa agent lists a property at $349,000. The seller wants to net $325,000 after paying a 5% commission and $1,500 in closing costs. At the listed price, does the seller achieve their goal?
- An Iowa buyer finances $225,000 at 5% for 30 years. Using a payment factor of $5.37 per $1,000, what is the monthly P&I?
- An Iowa property assessed at $185,000 has a homestead credit that reduces taxable value by $4,850. At a mill rate of 28, what are the annual taxes?
- An Iowa property is assessed at $195,000. The homestead tax credit reduces the tax on the first $4,850 of assessed value. The mill rate is 35 mills. What is the annual property tax?
- An Iowa property has potential gross income of $72,000, vacancy loss of 8%, and operating expenses of $28,000. What is the NOI?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →