Real Estate Math
An Iowa property has a gross monthly rental income of $3,200. The gross rent multiplier for the area is 125. What is the estimated market value?
A$380,000
B$400,000✓ Correct
C$420,000
D$440,000
Explanation
Estimated value = GRM × Monthly gross rent = 125 × $3,200 = $400,000. Using the values given ($3,200), apply the appropriate formula.. The correct answer is $400,000.. This is a common calculation on the Iowa real estate exam.
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