Real Estate Math

A Mississippi rental property generates $2,800 per month in rent. The owner wants to sell at a price representing a gross rent multiplier (GRM) of 10. What is the listing price?

A$280,000
B$336,000✓ Correct
C$238,000
D$168,000

Explanation

Annual rent = $2,800 × 12 = $33,600. Listing price = Annual Rent × GRM = $33,600 × 10 = $336,000.

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