Property Valuation
The gross rent multiplier (GRM) method estimates value by:
ADividing the sale price by the monthly gross rent
BMultiplying the monthly gross rent by the GRM factor✓ Correct
CSubtracting annual expenses from gross rent
DDividing NOI by the cap rate
Explanation
The GRM is calculated by dividing comparable sale prices by their monthly (or annual) gross rents. This factor is then applied to the subject property's gross rent to estimate value: Value = GRM x Monthly Gross Rent.
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