Gross Income Multiplier

Definition of "Gross income multiplier"

Geri Gray
Geri Gray PalmerHouse Properties

Method to compute the price of an income-producing property by dividing the asking price of the property by current gross rental income. A property in a comparable neighborhood may be valued at "12 times annual gross". If its annual gross rental income amounts to $40,000, the value would be taken as $480,000.

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