Given a monthly GRM of 200 and an annual income of $24,000, what is the property's estimated value?

To determine the property's estimated value using the Gross Rent Multiplier (GRM), you first need to understand what the GRM represents. The GRM is a factor used to estimate the value of an income-producing property by relating its rental income to its value.

In this scenario, the GRM is given as 200, and the annual income is $24,000. To find the estimated property value, you can multiply the annual income by the GRM. This calculation can be structured as follows:

1. Annual Income = $24,000
2. GRM = 200

Now, you multiply the annual income by the GRM:

Estimated Value = Annual Income x GRM Estimated Value = $24,000 x 200 = $4,800,000

Thus, the calculation shows that the property's estimated value, based on the provided GRM and annual income, is $4,800,000. This approach highlights the linear relationship between income and property value, allowing investors to gauge the worth of an income-generating asset based on its revenue potential.