If a property rents for $750 per month and the GRM is 110, what is the indicated value of the property?

If a property rents for $750 per month and the GRM is 110, what is the indicated value of the property?

• A. $75,000
• B. $82,500
• C. $90,000
• D. $100,000

Answer: (B)

To determine the indicated value of a property using the Gross Rent Multiplier (GRM), you can apply the formula: Indicated Value = Monthly Rent x GRM In this scenario, the monthly rent is $750, and the GRM is 110. By substituting these numbers into the formula: Indicated Value = $750 x 110 When you perform the multiplication: Indicated Value = $82,500 Thus, the correct answer is indeed $82,500, which reflects the property's value based on its rental income and the established GRM. This calculation helps investors recognize how much they might be willing to pay for a property based on the income it generates compared to similar properties in the area.

To determine the indicated value of a property using the Gross Rent Multiplier (GRM), you can apply the formula:

Indicated Value = Monthly Rent x GRM

In this scenario, the monthly rent is $750, and the GRM is 110. By substituting these numbers into the formula:

Indicated Value = $750 x 110

When you perform the multiplication:

Indicated Value = $82,500

Thus, the correct answer is indeed $82,500, which reflects the property's value based on its rental income and the established GRM. This calculation helps investors recognize how much they might be willing to pay for a property based on the income it generates compared to similar properties in the area.