Gross Rent Multiplier Calculator
Calculate GRM
Find the gross rent multiplier for a property
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Estimate Value from GRM
Estimate property value using a target GRM
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Formula
GRM = Property Price / Annual Gross Rent | Estimated Value = Annual Rent × GRM
Frequently Asked Questions
What is Gross Rent Multiplier (GRM)?
GRM is a quick screening metric for investment properties. GRM = Property Price / Annual Gross Rent. A lower GRM means the property generates more rent relative to its price. It's simpler than cap rate because it doesn't account for expenses.
What is a good GRM?
GRM varies by market. Generally, 4-8 is excellent, 8-12 is good, 12-20 is average, and above 20 may be overpriced for investment. Compare GRM to similar properties in the same market rather than using a universal benchmark.
GRM vs. Cap Rate: which should I use?
GRM is a quick screening tool that uses gross rent (ignoring expenses). Cap rate uses Net Operating Income (after expenses). Cap rate is more accurate for comparing investments. Use GRM to quickly filter properties, then calculate cap rate for serious analysis.
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