Property Valuation
A Minnesota appraiser determines a property's gross rent multiplier (GRM) is 120. The property generates $1,500/month in rent. What is the estimated value?
A$162,000
B$180,000✓ Correct
C$198,000
D$216,000
Explanation
Value = Monthly Rent x GRM = $1,500 x 120 = $180,000. The gross rent multiplier is a quick valuation tool that relates property value to gross monthly rent.
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