What does GIM stand for?

• A. Gross Income Multiplier
• B. Gross Investment Multiplier
• C. General Income Metric
• D. Gross Income Margin

Answer: (A)

The concept being tested is the term used to relate a property’s value to its gross income in quick valuation methods. The correct term is Gross Income Multiplier. It expresses how many times the annual gross income the property is worth, with the standard relationship: value = gross annual income × GIM. For example, if a property nets $120,000 in gross income each year and comparable properties show a GIM around 8, the estimated value would be about $960,000. This method is simple and fast, but it doesn’t account for expenses, vacancies, or financing, so it’s less precise than approaches that use net income or capitalization rates. The other options aren’t recognized appraisal multipliers for converting gross income to value.