Gross Rent Multiplier (GRM) Calculator
Calculate GRM
Calculate the Gross Rent Multiplier for a property
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Estimate Property Value from GRM
Estimate fair market value using a target GRM
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Formula
GRM = Property Price / Annual Gross Rent
Frequently Asked Questions
What is a good Gross Rent Multiplier?
GRM varies by market, but generally a lower GRM indicates a better value. In many markets, a GRM of 4-7 is excellent, 8-12 is average, and above 15 may be overpriced. Always compare GRM to local market averages.
What is the difference between GRM and cap rate?
GRM uses gross rent (before expenses) and compares it to price, while cap rate uses Net Operating Income (rent minus expenses). Cap rate is more precise because it accounts for operating costs. GRM is simpler but less accurate.
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