In May 2026, appraiser Devon Price analyzes a comparable three-unit property that sold for $750,000. Market rent data show each unit should rent for $3,000 per month. Rounded to two decimals, what gross rent multiplier does the sale indicate?
Correct Answer
A) 83.33
Step 1: Gross monthly rent = 3 units × $3,000 = $9,000. Step 2: GRM = Sale Price ÷ Gross Monthly Rent = $750,000 ÷ $9,000 = 83.33. That multiplier shows how many months of gross rent the sale price reflects.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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