What is gross rent multiplier?
Gross rent multiplier, or GRM, compares a property's price with its gross annual rental income. It is a quick screening measure and does not account for operating expenses, financing, taxes, or vacancies.
GRM formula
GRM = property price ÷ gross annual rent
property price = GRM × gross annual rent
Example
A $300,000 property producing $24,000 in gross annual rent has a GRM of 12.5.
This is a gross rent multiplier calculator for screening rental properties. If you need to calculate GRM or calculate gross rent multiplier, enter the property price and gross annual rent, or use the reverse mode to estimate a price from a target GRM.
Frequently asked questions
Is GRM the same as cap rate?
No. GRM uses gross rent and ignores operating expenses, while cap rate uses net operating income.
Does a lower GRM always mean a better investment?
No. GRM is only a screening metric. Compare properties with similar markets, condition, rents, expenses, and financing assumptions.
Can I calculate a property price from GRM?
Yes. Enter gross annual rent and a target GRM and the calculator works backward to estimate price.