Duplex

A duplex is a building with two separate dwelling units, either side by side or stacked. It is one of the most common properties screened by gross rent multiplier, because both units rent and the combined rent can be compared directly with the price. Two units at $2,000 each on a $500,000 price give a GRM of 10.4.

Duplex GRMs often run lower than single-family GRMs in the same neighborhood, since two smaller units often rent for more combined than one house of the same total size. That difference is part of why small multifamily is a common starting point for investors.

Compare duplexes with duplexes. Single-family sales and larger apartment sales trade at different multiples for reasons unrelated to value, including who is buying and how they finance. Duplexes also qualify as residential property for most mortgages, so buyers can often use owner-occupant loans while living in one unit.

Further reading: Duplex on Wikipedia.