Property Valuation
Gross rent multiplier (GRM) is calculated as:
ANOI divided by sale price
BSale price divided by annual (or monthly) gross rent✓ Correct
CCap rate divided by NOI
DNet income divided by expenses
Explanation
GRM = Sale Price / Gross Rent. It is a quick rule-of-thumb valuation metric. Annual GRM uses annual rent; monthly GRM uses monthly rent.
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