Property Valuation
Gross Rent Multiplier (GRM) is calculated as:
ANet Operating Income ÷ Cap Rate
BSales Price ÷ Gross Monthly Rent✓ Correct
CGross Rent × Vacancy Rate
DNet Income ÷ Sales Price
Explanation
GRM = Sales Price ÷ Gross Monthly (or Annual) Rent. It is a quick estimation tool used for small income properties, less precise than a full income approach analysis.
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