Property Valuation
The gross rent multiplier (GRM) is calculated by:
ANOI divided by cap rate
BSale price divided by monthly gross rent✓ Correct
CAnnual gross rent divided by vacancy rate
DOperating expenses divided by gross income
Explanation
GRM = Sale Price / Monthly Gross Rent. It is a quick rule-of-thumb measure used primarily for smaller residential income properties, not a substitute for a full income capitalization analysis.
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