Gross Rent Multiplier Calculator
Quick price-to-rent screening ratio for comparing rental listings.
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High GRM — property is expensive relative to its rent
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Open calculatorOverview
The Gross Rent Multiplier (GRM) Calculator gives investors a fast screening ratio for comparing rental properties before running a full cap rate or cash-on-cash analysis. GRM divides a property's price by its annual gross rent — no expenses, no financing, no NOI required.
A lower GRM generally means a property generates more rent relative to its price. GRM is a rough first-pass screen, not a substitute for Cap Rate or Cash-on-Cash Return, which account for operating expenses and financing.
How GRM Is Calculated
Annual Gross Rent is simply Monthly Rent × 12, before any expenses are subtracted. Because it ignores expenses, GRM comparisons only make sense between properties with similar expense ratios (similar age, type, and location).
Frequently Asked Questions
It varies heavily by market, but a GRM between 4 and 7 is often considered attractive for rental investors in many US markets — expensive coastal markets commonly run higher.
GRM needs only price and rent, so it's useful for quickly screening a large list of listings. Cap Rate requires knowing operating expenses, which usually means digging into each property individually — better for a shortlist, not a first pass.