If the gross rent multiplier (GRM) in an area is 11.50 and the annual income is $18,500, what is the estimated value of the property?

To determine the estimated value of the property using the gross rent multiplier (GRM), you multiply the annual income by the GRM. In this case, the annual income is $18,500 and the GRM is 11.50.

The calculation is as follows:

Value = Annual Income × GRM

Value = $18,500 × 11.50

Value = $212,750

This result shows that the property is estimated to be worth $212,750 based on the income it generates and the gross rent multiplier for that area. The GRM serves as a helpful metric for property valuation by linking rental income to property value, allowing appraisers to evaluate a property's worth relative to its income-generating potential.

The other choices do not result from the correct multiplication of the income and the GRM, which is why they do not reflect the estimated value accurately.