Property Valuation
A gross rent multiplier (GRM) is calculated as:
AAnnual NOI ÷ Sale Price
BSale Price ÷ Monthly Gross Rent✓ Correct
CMonthly Gross Rent × Vacancy Rate
DAnnual Gross Income ÷ Cap Rate
Explanation
GRM = Sale Price ÷ Monthly Gross Rent. It is a quick, rough estimator of value used mainly for small residential income properties.
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