Real Estate Math
An Oregon property has a gross rent multiplier (GRM) of 120. The monthly rent is $2,500. What is the estimated value?
A$300,000✓ Correct
B$30,000
C$250,000
D$25,000
Explanation
Value = Monthly Rent × GRM = $2,500 × 120 = $300,000. The Gross Rent Multiplier (GRM) is a simple income capitalization shortcut that estimates value by multiplying monthly gross rent by a market-derived multiplier.
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