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Gross Income Multiplier

A multiplier that represents the relationship between the gross income of a property and its estimated value. It is calculated by dividing the sales price of a property by its gross income at the time of sale. The multiplier to be used in an appraisal is developed through an analysis of a sufficient number of comparable properties which were rented at the time of sale. When the gross income multiplier, also called the gross rent multiplier, is applied to a property’s potential gross income, an estimate of value is indicated.

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