Property Valuation
When using the income approach for a Maine apartment complex, the gross rent multiplier (GRM) method uses:
AAnnual NOI divided by cap rate
BSale price divided by monthly gross rent✓ Correct
CAnnual gross income divided by expenses
DMonthly rent divided by purchase price
Explanation
The GRM = Sale price ÷ Monthly gross rent. To estimate value: Value = Monthly gross rent × GRM. This is a simplified income approach.
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