Property Valuation
The gross rent multiplier (GRM) for a Wyoming rental property is calculated as:
AAnnual Net Operating Income ÷ Sale Price
BSale Price ÷ Gross Monthly Rent✓ Correct
CMonthly Rent × 12 ÷ Capitalization Rate
DAppraised Value − Depreciation
Explanation
GRM = Sale Price ÷ Gross Monthly Rent. It is a simple valuation tool used for residential rental properties. For example, if a property sells for $180,000 and rents for $1,500/month, the GRM = 120.
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