Real Estate Math
A Minnesota home has a gross rent multiplier (GRM) of 95 and currently generates $1,650/month in rent. What is the estimated market value?
A$143,175
B$156,750✓ Correct
C$155,000
D$147,000
Explanation
Estimated value = Monthly rent x GRM = $1,650 x 95 = $156,750. The GRM provides a quick estimate of property value based on rental income. It is less precise than a full income approach analysis but useful for quick comparisons. Minnesota investors compare GRMs for similar properties to assess relative value.
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