Property Valuation
The gross rent multiplier (GRM) is calculated by:
ADividing NOI by the cap rate
BDividing sale price by gross monthly rent✓ Correct
CMultiplying net income by the holding period
DDividing annual expenses by gross income
Explanation
GRM = Sale Price ÷ Gross Monthly Rent. It is a quick valuation tool for income properties that compares property price to gross rental income.
Related Kentucky Property Valuation Questions
- Assessed value in Kentucky is typically set by:
- When appraising a Kentucky horse farm, which approach to value is typically given the most weight?
- Economic obsolescence in property valuation refers to a loss in value caused by:
- In the sales comparison approach, the term 'adjustment' refers to:
- A Kentucky appraiser uses comparable sales from 8 months ago. In a rising market, the appraiser should:
- An appraiser applies a negative adjustment to a comparable sale that has a feature the subject property lacks. For example, the comparable has a pool and the subject does not. The adjustment is made to:
- The principle of contribution states that:
- Reconciliation in the appraisal process refers to:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →