The Gross Rent Multiplier (or GRM) is a ratio that is used to estimate the value of income producing real estate properties. The Gross Rent Multiplier provides a rough estimate of value using only two aspects, the sales price and the total potential gross rents. Often this information is available from the sales of similar types of income properties in a particular area, so it can then be used to estimate the market value of other similar properties in the area.
Sales ÷ Monthly Potential Gross Income = Gross Rent Multiplier (monthly)
Gross Rent Multiplier (monthly) X Monthly Potential Gross Income = Estimated Market Value
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