Gross Rent Multiplier (GRM) Calculator
GRM = property price / gross annual rent. Quick screening metric (lower is better).
Result
GRM
11.11
Balanced
- Price$400,000
- Annual rent$36,000
- GRM11.111
- Years of rent to equal price11.11
Step-by-step
- GRM = 400,000 / 36,000 = 11.11.
How to use this calculator
- Enter price and gross annual rent.
- Read GRM.
About this calculator
GRM is a quick comparison metric — how many years of gross rent would equal the purchase price. Lower GRM = more rent per dollar of price. Doesn't account for expenses (NOI is more rigorous), but good for initial screening of a market or quick deal sorting.
Frequently asked
7-10 in strong cash-flow markets (Midwest, secondary cities). 12-18 in balanced. 20+ in appreciation-bet markets like SF and NYC.
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