Property Valuation
Gross Rent Multiplier (GRM) is used to:
ACalculate net operating income
BEstimate property value by multiplying GRM by the gross annual rent✓ Correct
CDetermine the capitalization rate
DCalculate monthly mortgage payments
Explanation
GRM is used to estimate property value: Value = GRM x Gross Annual Rent. It is a quick valuation tool, though less precise than the income capitalization approach using NOI.
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