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When calculating a gross rent multiplier, it is necessary to

a. multiply comparable property sales price by comparable property rent.
b. divide comparable property sales price by comparable property rent.
c. multiply comparable property sales price by subject property rent.
d. divide comparable property sales price by subject property rent.

User ACEG
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1 Answer

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Final answer:

To calculate a gross rent multiplier, divide comparable property sales price by comparable property rent.

Step-by-step explanation:

When calculating a gross rent multiplier, it is necessary to divide comparable property sales price by comparable property rent. The gross rent multiplier (GRM) is a ratio used to estimate the value of an income-producing property. It measures the relationship between the property's sales price and its rental income.

User Tader
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