Final answer:
To calculate the gross rent multiplier (GRM), divide the sale price of the property by the annual rental income. For a house renting at $900 per month and selling for $126,000, the GRM is 11.67, which rounds to 12, not matching any of the provided answer options.
Step-by-step explanation:
The question asks how to calculate the gross rent multiplier (GRM) for a property. To find the GRM, divide the property's sale price by the annual rental income. Given that the house rents for $900 per month and sold for $126,000, we first need to find the annual rental income by multiplying the monthly rent by 12 (months in a year):
$900 per month × 12 months = $10,800 per year
Next, to calculate the GRM:
$126,000 (sale price) ÷ $10,800 (annual rent) = 11.67, which when rounded to the nearest whole number is 12.
Since the answer options provided do not include 12, it seems there may be an error in the question or answer choices. The correct answer, not listed in the options, is a GRM of 12.