Using a monthly gross rent multiplier, what is the GRM of a property that sells for $800,000 and collects monthly rent of $4,000?
Correct Answer
C) 200
A monthly gross rent multiplier is the sale price divided by monthly gross rent: $800,000 ÷ $4,000 = 200. An annual GRM would divide by annual rent ($48,000) instead and give about 16.7, but the question asks for the monthly multiplier.
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