How is the gross rent multiplier calculated and what is its purpose?

• A. GRM = gross annual rent / property price; used to estimate mortgage payments.
• B. GRM = property price / gross annual rent; used to quickly compare investment properties.
• C. GRM = net operating income / property price; used for long-term cash flow.
• D. GRM = monthly rent / property price; used to set rent levels.

Answer: (B)