PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Gross rent multiplier, or GRM, is the relationship between a property's sale price or value and its gross periodic rent.
Valuation and Market Analysis
Income valuation
Define, distinguish, apply, retrieve
Official exam outline plus authoritative Georgia or federal references where the topic has a controlling rule. Independent educational resource, not affiliated with GREC or PSI.
Continue from definition to exam-ready recall.
1,300+ Georgia and national questions, detailed explanations, spaced review, readiness tracking, Math Coach, and offline study. $59.99 once with no subscription.
passgeorgiarealestate.com/download
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Gross rent multiplier mean?
Gross rent multiplier, or GRM, is the relationship between a property's sale price or value and its gross periodic rent. Value equals gross rent multiplied by the market-derived GRM.
How do you separate the nearest exam answer?
GRM uses gross rent and no operating expenses. Capitalization uses net operating income and a cap rate.
What changes or stays the same in Georgia?
The exam must keep the periods consistent. A monthly GRM pairs with monthly rent, while an annual multiplier pairs with annual rent.
Comparable sales support a monthly GRM of 120, and the subject rents for $2,500 per month. Indicated value is $300,000.
Mixing annual rent with a monthly multiplier produces an answer twelve times too large.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
Comparable sales support a monthly gross rent multiplier of 110. The subject house rents for $2,200 a month and has $6,000 in annual operating expenses. What value does the GRM indicate?
- A
$236,000
- B
$2,904,000
- C
$242,000
- D
$187,000
Value equals gross rent times the GRM, so $2,200 times 110 is $242,000. GRM ignores operating expenses, so subtracting them in any form is an error. Multiplying annual rent of $26,400 by a monthly multiplier gives $2,904,000, twelve times too large.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Valuation and Market Analysis complete lesson
https://www.passgeorgiarealestate.com/math/gross-rent-multiplier
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Congressionally authorized source for USPAP and appraisal standards.
https://appraisalfoundation.org/pages/uspap