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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