In a property assessment, what does GRM help compare?

The Gross Rent Multiplier (GRM) is a useful metric in property assessment that primarily helps in analyzing the relationship between selling prices and rental income. By calculating the GRM, appraisers and investors can quickly assess how much a property is generating in terms of rental income relative to its sales price.

Essentially, the GRM is determined by taking the property's sale price and dividing it by its annual gross rental income. This provides a simple ratio that can be used to compare properties with similar characteristics to identify which is a better investment based on income generation. A lower GRM indicates a potentially better yield, making it an invaluable tool for investors aiming to maximize rental income.

In this context, the other options don’t accurately represent GRM’s specific application. While operating expenses, market valuations, and income potential are important in property assessments, they are not what GRM is designed to directly compare. GRM specifically focuses on evaluating how much rent a property generates compared to its selling price, thus validating the chosen answer.