Property Valuation
What is a gross income multiplier (GIM) and how does it differ from a GRM?
AThey are identical; GIM and GRM are interchangeable
BA GRM uses monthly rent; a GIM uses annual gross income including all revenue sources (not just rent) such as parking, laundry, and ancillary income✓ Correct
CA GIM is used for commercial property; GRM for residential
DA GIM includes expense deductions; a GRM does not
Explanation
The GRM (Gross Rent Multiplier) uses rental income only, often monthly. The GIM (Gross Income Multiplier) uses total annual gross income from all sources (rent, parking, laundry, vending). For multi-family properties with significant ancillary income, the GIM provides a more complete picture of value.
Related Nevada Property Valuation Questions
- What is the sales comparison grid in a Nevada residential appraisal?
- What is 'over-improvement' and how does it affect Nevada home value?
- What is the Automated Valuation Model (AVM) and how is it used in Nevada real estate?
- What is a 'paired sales analysis' in real estate appraisal and how is it used in Nevada?
- What is price per square foot analysis in Nevada residential real estate?
- Accrued depreciation in the cost approach includes:
- The principle of substitution in Nevada appraisal theory states that:
- What is a land-to-value ratio and why does it matter in Nevada desert development?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →