The formula for calculating Gross Income Multiplier is
= Current Value of the Property / Gross Annual Income of the Property.
In this question the current value of property is 6 million and the gross annual income is 500000, so by these values according to the formula
6000000/500000
=12 times
Hence the gross income multiplier is 12 times.
Current value of the property is the property’s current market price. The owner can determine this value by considering the current market and people’s expectations, location factors, etc.
Gross income of the property includes the average annual rent of the apartments or building held for rentals, the average annual turnover of the products held for the trading purpose for manufacturing purposes, etc
Learn more about gross income at
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