Property Valuation
In Iowa, the gross rent multiplier (GRM) for a rental home is calculated as:
ASale price ÷ Annual NOI
BSale price ÷ Monthly gross rent✓ Correct
CAnnual gross rent ÷ Sale price
DMonthly NOI × 12 ÷ Sale price
Explanation
GRM = Sale price ÷ Monthly gross rent. It provides a quick comparison tool for small income properties without detailed expense analysis.
Related Iowa Property Valuation Questions
- A single-family home has comparable sales ranging from $195,000 to $215,000 after adjustments. The appraiser gives the most weight to the comparable most similar to the subject. The final estimated value is likely to be:
- An appraiser is evaluating a commercial property with the following: Potential Gross Income = $80,000; Vacancy = 5%; Operating Expenses = $35,000. What is the Net Operating Income?
- Which Iowa property type would most likely be appraised using the income approach?
- An Iowa appraiser makes a positive adjustment of $5,000 to a comparable sale. This means:
- In an Iowa appraisal report, the term 'market value' means:
- Which of the following BEST defines 'market value'?
- An appraiser values a single-family home in Iowa using the sales comparison approach. The subject has a two-car garage; one comparable sold with a one-car garage for $215,000. If the garage difference is worth $5,000, the adjusted comparable value is:
- Iowa law requires county assessors to provide notice of property assessment to owners. A property owner who disagrees with their assessment may:
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