The basic steps in using the gross income multiplier
(GIM) involves ascertaining the current market rental income of subject property
with similar properties producing an income from which to establish Market
Rent. Market rent is the amount of rent
a property would command if exposed to the open market for a reasonable period
of time and rented by a reasonably knowledgeable tenant.
To determine an applicable GIM, adjustments are made
in the determined rental price from a comparable property with subject
property. By dividing the sale price of
recently sold properties by the gross monthly income of the comparable
properties, thus deriving the GIM.