What is the gross rent multiplier for a house valued at $65,000 with a monthly rent of $500?

To determine the gross rent multiplier (GRM), you need to divide the value of the property by the annual rental income. The GRM is a useful tool in real estate investment, as it provides a simple way to evaluate the value of rental properties based on their income-producing potential.

In this scenario, the property is valued at $65,000, and the monthly rent is $500. First, calculate the annual rental income by multiplying the monthly rent by 12:

Annual Rent = Monthly Rent × 12 Annual Rent = $500 × 12 = $6,000

Next, to find the gross rent multiplier, divide the property value by the annual rental income:

GRM = Property Value / Annual Rent GRM = $65,000 / $6,000

Calculating this gives:

GRM = 10.83

It seems there may have been a miscalculation with the values provided. If you were considering the correct options, you might want to double-check the accuracy of the house valuation or the rent to ensure that the numbers correspond correctly with standard GRM values, as they can often point to significant information in investment analysis.

In this case, the conclusion was that the GRM should represent a ratio