GRM (Gross Rent Multiplier) Calculator
Calculate Gross Rent Multiplier for quick property comparisons. Fast screening tool for rental property investments.
How it works
GRM = Purchase Price ÷ Annual Gross Rent. Lower is generally better for cash flow, but compare within your market.
Example
$300,000 price ÷ $36,000 rent = 8.3 GRM.
FAQ
What is a good GRM for rental property?
Typically 4-12 depending on market. Lower GRM means better value, but compare within the same area and property type.
How is GRM calculated?
GRM = Purchase Price ÷ Annual Gross Rent. It shows how many years of gross rent it takes to equal the purchase price.
GRM vs Cap Rate - which is better?
GRM is faster for initial screening, while cap rate is more accurate since it considers expenses. Use GRM for quick comparisons, cap rate for detailed analysis.
Does GRM include expenses?
No, GRM uses gross rent only. It doesn't account for vacancy, expenses, or financing - making it a simple but limited metric.