GRM below 10 is generally favorable in most markets. In expensive coastal markets, GRMs of 15–20 are common. Lower GRM = faster payback from gross rents.

GRM vs cap rate — which is better?

Cap rate accounts for expenses and is more accurate. GRM is a quick filter using only gross rent without deducting vacancies or operating costs.

How to use GRM to estimate value?

Value = GRM × Annual Gross Rent. If comparable properties sell at GRM 12 and your property grosses $60k/year, estimated value = $720,000.

Gross Rent Multiplier (GRM) Calculator

Calculate GRM as Price / Annual Gross Rent. Quick screening metric to compare properties before detailed underwriting. Lower GRM generally indicates better value.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate GRM as Price / Annual Gross Rent. Quick screening metric to compare properties before detailed underwriting. Lower GRM generally indicates better value. Use the grm calculator result to inform your calculation.

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Gross Rent Multiplier (GRM) Calculator

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Frequently Asked Questions

What is a good GRM?

GRM vs cap rate — which is better?

How to use GRM to estimate value?