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Gross Rent Multiplier (GRM) Calculator

Benchmark property price against annual gross rent using GRM.

Gross Rent Multiplier (GRM) Calculator

Quickly benchmark a property's price against its annual gross rent.

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Income return estimate.

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DSCR

Debt service coverage.

Property Appreciation

Future value projection.

Guide

Using GRM for quick screens and next steps

  • Compare GRM to local comps by asset type and neighborhood.
  • Move to NOI/cap rate analysis after screening to account for expenses.
  • Normalize for concessions and seasonality to avoid overstating rent.

Frequently Asked Questions

SEO‑oriented guidance on GRM usage

What is GRM?

Gross Rent Multiplier equals purchase price divided by annual gross rent and provides a quick screening metric.

Is a lower GRM better?

Generally yes—lower GRM indicates more rent per purchase dollar. However, expenses and capex can change the picture.

How does GRM differ from cap rate?

Cap rate uses NOI (after expenses); GRM uses gross rent only. Cap rate is more complete but requires expense data.

What is a good GRM?

It varies by market. Urban cores may have higher GRMs than suburban or tertiary markets; compare to local comps.

Can I compare single‑family and multifamily with GRM?

Yes, but adjust for differences in vacancy, maintenance, and management costs.

Does GRM include appreciation potential?

No. GRM measures income multiple only. Consider appreciation and rent growth for total return.

How do concessions or free months affect GRM?

Use effective rent (after concessions) to avoid overstating income and understating GRM.

Should I include other income?

If it is recurring (parking, laundry), add to annual gross income for a more accurate GRM.

Is GRM useful for pricing?

It's a first pass. Use GRM to shortlist, then analyze NOI, capex, financing, and risk for final pricing.

Does GRM work for short‑term rentals?

Use annualized revenue normalized for seasonality and occupancy; volatility may reduce reliability compared with long‑term leases.

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Gross Rent Multiplier (GRM) Calculator

Benchmark property price against annual gross rent using GRM.

How to use Gross Rent Multiplier (GRM) Calculator

Step-by-step guide to using the Gross Rent Multiplier (GRM) Calculator:

  1. Enter your values. Input the required values in the calculator form
  2. Calculate. The calculator will automatically compute and display your results
  3. Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Gross Rent Multiplier (GRM) Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Gross Rent Multiplier (GRM) Calculator is designed to be user-friendly and provide instant calculations.

Is the Gross Rent Multiplier (GRM) Calculator free to use?

Yes, the Gross Rent Multiplier (GRM) Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Gross Rent Multiplier (GRM) Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Gross Rent Multiplier (GRM) Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.