While making a rule of thumb appraisal of an apartment building, a broker estimated the price to be 10 times gross annual income. The broker is using a:

Question

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The broker is using the gross rent multiplier, which is a common rule of thumb used in real estate to estimate the value of an income-producing property. It is calculated by dividing the property's sale price by its gross rental income. In this case, the broker estimated the price to be 10 times the gross annual income, which is equivalent to using a gross rent multiplier of 10.

While Making a Rule of Thumb Appraisal of an Apartment