The Effective Gross Income Multiplier establishes a relationship between the Effective Gross Income and the Value or Price.

 

The 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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