Property Valuation
The gross rent multiplier (GRM) method for valuing a rental property uses which formula?
AGRM = Net Operating Income ÷ Sale Price
BGRM = Sale Price ÷ Gross Annual Rent✓ Correct
CGRM = Gross Annual Rent × Cap Rate
DGRM = NOI ÷ Cap Rate
Explanation
The Gross Rent Multiplier (GRM) is calculated by dividing the sale price by the gross annual rent. To estimate value: Value = GRM × Gross Annual Rent.
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