Real Estate MathIncome_approachMEDIUM
A property sells for $230,000 and generates monthly rent of $1,800. What is the Gross Rent Multiplier (GRM)?
Correct Answer
B) 128
The Gross Rent Multiplier (GRM) is calculated by dividing the sale price by the monthly gross rent: $230,000 ÷ $1,800 ≈ 127.78, which rounds to 128.
Answer Options
A
118B
128C
138D
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Related Topics & Key Terms
Related Topics:
capitalization rateincome approach to valuenet operating incomeinvestment property analysisgross rent multiplier
Key Terms:
gross rent multiplierGRMincome approachmonthly rentinvestment property
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