Real Estate Math
A Kentucky property has a market rent of $1,400/month but current rent is $1,100/month. The appraiser determines that the market value based on market rent at a 125 GRM is:
A$137,500
B$157,500
C$175,000✓ Correct
D$195,000
Explanation
Value based on market rent = Market Rent × GRM = $1,400 × 125 = $175,000. Using the values given ($1,400, $1,100), apply the appropriate formula.. The correct answer is $175,000.. This is a common calculation on the Kentucky real estate exam.
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