Net Income Multiplier

A factor that, when applied by multiplication to a property's Net Operating Income results in a property value estimate.
Example: A duplex generates $20,000 of gross rental income and requires $8,000 of Operating Expenses providing $12,000 of net operating income. If similar properties in the area typically sell for 10 times net operating income, this duplex would be worth $120,000 (10 " $12,000) using the net income multiplier.