Property Valuation
The income multiplier approach to valuing Maryland residential rentals typically uses a:
ACap rate derived from commercial transactions
BGross rent multiplier (GRM) based on residential comparable sales and rents✓ Correct
CDiscount rate from the Federal Reserve
DNet income multiplier from industrial properties
Explanation
For residential income properties in Maryland, the GRM (gross rent multiplier) is commonly used. It is derived from comparable sales and their market rents.
Related Maryland Property Valuation Questions
- In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:
- Accrued depreciation in the cost approach is the sum of:
- Maryland market rent is defined as:
- In the sales comparison approach, an appraiser makes adjustments to comparables for differences. If a comparable has a feature the subject does NOT have, the adjustment to the comparable is:
- The principle of progression states that a lower-value Maryland home located among higher-value homes will:
- In Maryland, an appraisal review involves:
- A Maryland property's gross rent multiplier (GRM) is 120, and the monthly rent is $2,500. The indicated value is:
- The principle of substitution in Maryland real estate appraisal states:
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