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GROSS RENT MULTIPLIER

GRM Calculator

Compare a property's price with its scheduled annual base rent before vacancy and expenses.

GRM ignores vacancy and expenses. Use it to compare similar properties, then validate the deal with NOI, cap rate and cash flow.

GROSS RENT MULTIPLIER

ANNUAL SCHEDULED RENT
GROSS RENT YIELD
MONTHLY RENT-TO-PRICE
GRM = property price ÷ annual scheduled base rent
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How do I use GRM?

GRM is a quick price-to-rent comparison. A $300,000 property collecting $43,200 of scheduled annual base rent has a GRM of 6.94.

There is no universal “good” GRM. Local property type, expenses, condition, financing and expected growth matter. Compare like with like, then calculate operating income and cash flow.

Cap rate calculator · Cash flow calculator

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