Real Estate Math

A Wisconsin duplex sells for $375,000. Both units rent for $1,300/month each. What is the annual GRM (Gross Rent Multiplier)?

A12.0
B12.1
C14.4
D144✓ Correct

Explanation

Annual gross rent = 2 × $1,300 × 12 = $31,200. Annual GRM = $375,000 / $31,200 = 12.02. If using monthly GRM: $375,000 / $2,600 = 144.2. The monthly GRM is 144.

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