Gross Monthly Rent Multiplier Value

An appraiser comes up with a gross monthly multiplier of 150, and the fair market rent of the home is $1,275 per month. The estimate of value is then:

  1. $191,250
  2. $240,800
  3. $236,000
  4. $275,500

The answer is A.  Remember this equation: “gross monthly rent multiplier × monthly rent = estimate of value”

So, 150 X 1,275 = 191,250.