Gross Rent Multiplier Calculator
Find the gross rent multiplier (price ÷ annual gross rent) to screen income properties quickly, and estimate value from a market GRM. Runs in your browser.
Gross rent multiplier
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Show the math
GRM relates price to the rent a property produces:
GRM = price ÷ annual gross rent
implied value = market GRM × annual gross rent
A lower GRM means more rent per dollar of price. It ignores expenses and vacancy, so it's a fast first screen, pair it with cap rate and cash flow for a fuller picture. All math runs locally in your browser.
What this does
A gross rent multiplier calculator finds the GRM (price divided by annual gross rent) to screen income properties quickly, and estimate value from a market GRM.
How it works
A lower GRM means more rent per dollar of price. Multiplying a market GRM by a property’s annual gross rent estimates its value.
GRM = price ÷ annual gross rent
How to use it
- Enter the price and annual gross rent.
- Read the GRM.
- Enter a market GRM to estimate value.
- Compare against similar properties.
Understanding your result
GRM ignores operating expenses, vacancy, and financing, so two properties with the same GRM can perform very differently. Pair it with cap rate and cash flow.
Example
A $240,000 property renting for $24,000 a year has a GRM of 10.
Sources & methodology
Last updated .
Frequently asked questions
What is the gross rent multiplier?
GRM is the price divided by annual gross rent. A lower GRM means more rent per dollar of price, a fast first screen for income properties.
How do I estimate value with GRM?
Multiply a typical market GRM by the property’s annual gross rent. The tool does this when you enter a market GRM.
What are the limits of GRM?
It ignores operating expenses, vacancy, and financing, so two properties with the same GRM can perform very differently. Pair it with cap rate and cash flow.
Do you store my numbers?
No. All math happens locally in your browser.
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