Real Estate Math
The gross rent multiplier (GRM) of a property is calculated as:
ANet Operating Income ÷ Sale Price
BSale Price ÷ Monthly Gross Rent✓ Correct
CMonthly Gross Rent ÷ Sale Price
DAnnual NOI ÷ Cap Rate
Explanation
GRM = Sale Price ÷ Monthly Gross Rent. It provides a quick measure of how many months of gross rent equal the sale price — useful for quick comparisons of small income properties.
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