Calculate gross rent multiplier (grm) for real estate investments and properties
Enter the property purchase price and the annual gross rental income. The calculator divides the property price by annual gross rent to determine the Gross Rent Multiplier (GRM).
A property priced at $300,000 with annual gross rent of $36,000 has a GRM of 8.33 ($300,000 รท $36,000). Lower GRMs indicate better value.
Lower GRM generally indicates better value. Typical range is 4-12, varying by market. Compare to local averages for similar properties.
GRM uses gross rent (no expenses); cap rate uses NOI. GRM is quicker but less accurate. Cap rate is better for serious investment analysis.
For quick comparisons or initial screening. Single-family homes often use GRM since expenses are similar across properties.