Property Valuation
In the income approach, gross rent multiplier (GRM) is calculated as:
AMonthly rent divided by annual income
BProperty value (sale price) divided by gross monthly or annual rent✓ Correct
CNet operating income divided by property value
DGross income divided by total expenses
Explanation
GRM = Property Sale Price ÷ Gross Rent (monthly or annual). It is a quick way to estimate value based on rental income without accounting for vacancies and expenses.
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