Real Estate Math

A Wisconsin property has a gross rent multiplier of 9 and monthly rent of $1,800. What is the estimated market value?

A$16,200
B$162,000
C$194,400✓ Correct
D$216,000

Explanation

Value = GRM × Monthly Rent = 9 × $1,800 × 12 = $194,400. (Note: GRM × Annual Rent = 9 × $21,600 = $194,400.)

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