Property Valuation
In Wisconsin, 'gross rent multiplier' (GRM) is calculated as:
ASale Price divided by Net Operating Income
BSale Price divided by Gross Monthly Rent✓ Correct
CNOI divided by Cap Rate
DGross Income divided by Vacancy Rate
Explanation
The Gross Rent Multiplier is calculated by dividing the sale price by the gross monthly (or annual) rent, providing a quick valuation tool for income properties.
Related Wisconsin Property Valuation Questions
- The principle of progression in property valuation states that:
- A Wisconsin appraiser is performing an appraisal for a government agency acquisition. The appraisal must comply with:
- Wisconsin property taxes are based on:
- A Wisconsin property's net operating income is $36,000 and the capitalization rate is 8%. What is the indicated value?
- Accrued depreciation in a Wisconsin appraisal refers to:
- When a Wisconsin appraiser determines highest and best use for a vacant lot, they must consider which four tests?
- A Wisconsin appraiser must be independent and have no undisclosed interest in the property being appraised because of the ethical requirement of:
- A Wisconsin foreclosure sale price is generally NOT used as a comparable sale in an appraisal because:
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