We continue to see Ada County 4 plex values increasing at a steady rate. The good news is that rents have been increasing as well. According to the financial information on the Intermountain Multiple Listing Service and financials provided by listing agents, February's Gross Rent Multiplier (GRM) dropped to 143 from 149 in January. Compared to sales price, rents have increased. The trailing 6-month average for GRM still remains at about 150. With the higher rents, February's Cap rate also increased to 5.36 with a trailing 6-month average of 5.29%, which indicates Buyer's Net Operating Income has increased when compared to sales price.
Tony A Drost , MPM® RMP®
Chairman, First Rate Property Management, Inc
A Certified Residential Management Company
Associate Broker, Swope Investment Properties