For which property type would the gross rent multiplier be calculated?

The gross rent multiplier (GRM) is a valuation metric used primarily for income-generating properties, specifically those that are rented out to tenants. It provides a quick way to estimate the value of a property based on the rental income it produces.

In the case of a duplex used as a rental property, the GRM would be applicable because duplexes can provide rental income from two separate units. To determine the value of the duplex, an investor would typically calculate the GRM by dividing the property's purchase price by its gross rental income. This allows for a straightforward comparison with other similar rental properties to quickly assess investment potential.

The other property types listed do not typically generate rental income that can be applied to GRM calculations. A single-family home may or may not be used as a rental; if it's not rented, it wouldn't provide rental income data for calculating GRM. Commercial real estate can have similar considerations; however, it often employs different valuation methods more suited for commercial income. A vacant lot, on the other hand, generates no income, making the GRM irrelevant for that type of property.