What is considered to be the best estimate of the gross rent multiplier in typical evaluations?

The gross rent multiplier (GRM) is a valuation metric used by appraisers to assess the value of investment properties based on their rental income. The best estimate of the gross rent multiplier in typical evaluations is often around 108. This figure represents a common benchmark derived from the relationship between property value and gross rental income in many markets.

Using a GRM of 108 implies that for every dollar of annual rent, the property is valued at approximately $108. This multiplier is derived from analysis of comparable properties and reflects a realistic expectation of market conditions. The number 108 may be seen as balancing factors such as the condition of the real estate market, investor expectations, and the current rental trends. It encompasses an average expectation, where slight variations can occur depending on specific local market dynamics.

Values like 92, 100, or 116 represent different interpretations that may apply under unique circumstances or in specific regions, but generally, 108 is widely accepted as a reasonable, general estimate for many evaluations.