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Gross Rent Multiplier Calculator

Screen rental properties in seconds. Enter purchase price and annual gross rent, we'll compute GRM and benchmark it against typical market ranges.

Gross Rent Multiplier

10.42

↑ Good

Property purchase price
USD
Annual gross rental income
USD / year

Total rent collected before vacancy or expenses.

Gross yield
9.60%
Property price
$500,000
Annual rent
$48,000
Healthy range
8 – 12
How this is calculated

GRM = Property price ÷ Annual gross rent

GRM ignores expenses. It's the fastest screen for filtering a long list of deals, but never the last word before you write an offer.

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We'll layer expenses, financing, and submarket comps onto your GRM screen and tell you which deals are worth a real underwriting pass. Free 30-minute call.

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FAQ

Common questions

When should I use GRM instead of cap rate?

GRM is a back-of-envelope screen, it ignores expenses entirely. Use it when you have rents and price but no clean expense data, especially scanning MLS listings or auctions. For final underwriting, switch to cap rate or DSCR.

What's a good GRM?

It's market-dependent, but as a rough guide: under 8 is exceptional, 8–12 is healthy in most secondary markets, 12–15 is typical in major metros, and over 15 usually signals appreciation-driven coastal markets where yield is thin.

Why does GRM ignore expenses?

That's the trade-off. GRM is fast, it only needs price and gross rent. The risk: two buildings with the same GRM can have wildly different NOI if one has higher taxes, older systems, or worse management. Always pair with an expense check.

Is GRM the same as gross yield?

They're inversely related. GRM = price ÷ gross rent. Gross yield = gross rent ÷ price (expressed as %). A GRM of 10 equals a 10% gross yield. Different industries prefer one or the other, same number, different framing.
Need help interpreting your numbers?

Ready to compare your GRM against live market trades?

We track GRM benchmarks across 50+ submarkets. Send us your shortlist and we'll tell you which deals deserve a full underwriting pass.