When an appraiser is appraising income-producing property, they use the income approach to determine its value. This is accomplished by dividing the value by the rent, yielding the gross rent multiplier (GRM). Then, using the rent of the subject property, the appraiser can determine the value of the subject property.
$2,940,000 ÷ $21,000 = 140
140 x $16,000 = $2,240,000