A gross income multiplier differs from a gross rent multiplier in that the GIM uses:
Correct Answer
D) Total income including other sources, not rent alone
Why this is correct: A Gross Income Multiplier (GIM) uses all potential gross income from a property, including rent, parking fees, laundry income, etc. A Gross Rent Multiplier (GRM) uses only rental income. Why the other choices are wrong: "The property's current assessed value as its base figure" is not correct; both multipliers use sale price. "Net income after all operating expenses" describes a net income multiplier, not a gross multiplier. "Rent from residential units exclusively" describes a GRM, not the distinction between GIM and GRM. Exam tip: GRM = Price / Gross Scheduled Rent. GIM = Price / Gross Scheduled Income. Know which income stream your comparable data is based on.
Why This Is the Correct Answer
Why this is correct: A Gross Income Multiplier (GIM) uses all potential gross income from a property, including rent, parking fees, laundry income, etc. A Gross Rent Multiplier (GRM) uses only rental income. Why the other choices are wrong: "The property's current assessed value as its base figure" is not correct; both multipliers use sale price. "Net income after all operating expenses" describes a net income multiplier, not a gross multiplier. "Rent from residential units exclusively" describes a GRM, not the distinction between GIM and GRM. Exam tip: GRM = Price / Gross Scheduled Rent. GIM = Price / Gross Scheduled Income. Know which income stream your comparable data is based on.
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An overall rate extracted from a sale whose NOI excluded reserves, applied to a subject NOI that includes them, will:
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