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Each unit in a fourplex rents for $850 per month. If the appraised value is $460,000, what is the GRM for the fourplex?

1 Answer

4 votes

Answer:

135.3

Step-by-step explanation:

GRM stands for Gross rent multiplier.

The formula and the computation of the gross rent multiplier are shown below:

Gross rent multiplier = Appraisal value ÷ rent for each four plex

= $460,000 ÷ 3,400

= 135.3

The rent for 4 units is computed below:

= Rent per month × number of four plex

= $850 × 4

= $3,400

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