What is the range of gross rent multipliers typically found in evaluations?

The range of gross rent multipliers (GRM) is an important metric used in real estate evaluations to determine property values based on income generation. The Gross Rent Multiplier is calculated by dividing the property's sale price by its gross rental income.

The range of 95.7 to 115.8 is a realistic representation of what might be observed in various markets, particularly for residential properties. This range reflects typical market conditions where investors are willing to pay a multiple of the monthly rent for properties. These multiples can vary based on location, property type, and economic conditions, but the values within this range are often found in actual appraisals.

Other ranges listed do not accurately represent gross rent multipliers. For instance, the numerical values in other choices are too high, too low, or not relevant to evaluating rental income properties. Understanding the appropriate range helps appraisers perform accurate evaluations and make informed investment decisions based on market data.