Potential Gross Income Multiplier

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The Potential Gross Income Multiplier (PGIM) establishes a relationship between the Potential Gross Rent and the Value or Price.  The PGIM is often called the Gross Income Multiplier (GIM) or the Gross Rent Multiplier (GRM).

 

Potential Gross Income Multiplier  = Sale price (value) ÷ Potential Gross Income

 

To estimate value using the PGIM:

 

Indicated value of the subject property = Subject's Potential Gross Income x Potential Gross Income Multiplier of the comparable sale.

 

The potential gross monthly income multiplier would use the monthly income rather than the annual income.

 

Vacancy allowance, collection allowance, and other income are not included  in the potential gross income multiplier.

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