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

The gross rent multiplier (GRM) is a valuation metric commonly used in real estate to evaluate the potential profitability of income-generating rental properties. It is calculated by taking the property's sale price and dividing it by the gross rental income it produces. This metric is particularly useful for properties that generate rental income, making option B— a duplex used as a rental property — a suitable choice.

Duplexes, like other multifamily rental properties, are assessed based on their ability to generate income. Investors often use GRM to quickly determine if a property is worth further investigation, especially when comparing multiple income-producing properties. While single-family homes and commercial properties may also have their rental yields assessed, GRM is less commonly applied to them compared to multifamily rentals, specifically those structured like a duplex.

A vacant lot does not produce any rental income, and therefore GRM would not be applicable in that case. Hence, the duplex stands out as the ideal property type for calculation of the gross rent multiplier.