Property Valuation
The gross rent multiplier (GRM) method estimates value by:
ADividing the sale price by the gross monthly rent✓ Correct
BMultiplying NOI by the capitalization rate
CDividing gross annual income by operating expenses
DMultiplying assessed value by the assessment ratio
Explanation
GRM = Sale Price ÷ Gross Monthly Rent. To estimate value: Value = GRM × Subject's Monthly Rent. This is a quick, simplified income approach often used for small residential income properties.
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