If a property has an annual rental income of $12,000 and an assessed value of $180,000, what is the Gross Rent Multiplier for that property?

To calculate the Gross Rent Multiplier (GRM), you divide the assessed value of the property by the annual rental income. The formula is:

[ \text{Gross Rent Multiplier} = \frac{\text{Assessed Value}}{\text{Annual Rental Income}} ]

In this case, the assessed value is $180,000 and the annual rental income is $12,000. Plugging these values into the formula gives:

[ \text{GRM} = \frac{180,000}{12,000} = 15 ]

Thus, the Gross Rent Multiplier for the property is 15. This multiplier is useful in real estate investment analysis, as it helps investors estimate the value of an income-producing property based on its rental income. A GRM of 15 indicates that the property is valued at 15 times its annual rent, which is a useful metric for comparing investment potentials of different properties.