What is the Gross Rent Multiplier (GRM)?

The GRM is a simple metric calculated by dividing the property price by its gross annual rental income. It is used to quickly screen potential investment properties.

Advertisement (728x90)

🏢

🏢 Real Estate

Gross Rent Multiplier (GRM) Calculator

Calculate the Gross Rent Multiplier to estimate property value relative to rental income.

⚡ Instant 🆓 Free 🔒 Private

Property Price ($)

Annual Gross Rent ($)

Gross Rent Multiplier (GRM)

The Gross Rent Multiplier is a simple alternative to Cap Rate used to screen and compare potential investment properties quickly.

Unlike Cap Rate, GRM does not account for operating expenses or vacancies; it only looks at the relationship between the property price and its gross rental income.

Formula: Property Purchase Price / Gross Annual Rental Income.

In general, a lower GRM is considered better for an investor, as it means the property is generating more income relative to its price tag.