Gross Income Multiplier (GIM)
Sale price divided by annual gross income — the annual-income cousin of the monthly gross rent multiplier, typically used for commercial and larger residential income property.
Related Terms
Gross Rent Multiplier (GRM)
GRMThe ratio of a property's sale price to its gross monthly (or annual) rental income.
Effective Gross Income Multiplier (EGIM)
EGIMThe ratio of a property's sale price to its effective gross income.
Income Approach
A valuation method that estimates a property's value based on the income it generates or is expected to generate.
More in Income Approach
View allCapitalization Rate (Cap Rate)
Cap RateThe ratio of a property's net operating income to its market value or sale price, expressed as a percentage.
Net Operating Income (NOI)
NOIThe annual income remaining after deducting all operating expenses from effective gross income, but before deducting debt service (mortgage payments) and income taxes.
Effective Gross Income (EGI)
EGIPotential gross income minus vacancy and collection losses, plus other income (laundry, parking, late fees).
Discounted Cash Flow Analysis (DCF)
DCFA yield capitalization technique that estimates property value by projecting future cash flows (income minus expenses) over a holding period and discounting them to present value using a market-derived discount rate..