The Effective Gross Income Multiplier establishes a relationship between the Effective Gross Income and the Value or Price.
See Also
Moody's CRE | The Nuances of Calculating Net Operating Income (NOI)What Is the Multiplier Effect? Formula and ExampleEffective Gross Income (EGI): Definition and Calculation FormulaGross Rent Multiplier (GRM): Calculator, Property Evaluation, Alternatives | Multifamily LoansThe formula:
Effective Gross Income Multiplier = Sale price ÷ Effective Gross Income
The effective gross monthly income multiplier would use the monthly income rather than the annual income.
Indicated value of the subject property = Subject's Effective Gross Income x Effective Gross Income Multiplier of the comparable sale.
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