Gross Income Multiplier (GIM) for Real Estate Comps

The GIM can be used to compare properties or can be averaged across properties to determine a market GIM rate, which can then be applied to a property under investment consideration.

GIM = Purchase Price / Gross Annual Income

Because sale of income generating properties can be infrequent, it may be difficult to employ the GIM approach when performing a valuation. Further, truly comparable properties may not exist. Gross rental income is not necessarily better than net operating income, when valuing properties.