Use our free Gross Rent Multiplier (GRM) Calculator to quickly assess the value of an income-generating property. Understand how this metric helps real estate investors compare different opportunities based on their price and gross annual rental income. Make informed investment decisions with ease.
Formula:
The Gross Rent Multiplier (GRM) is a quick measure of the value of an investment property. It is calculated by dividing the property's purchase price by its gross annual rental income.
Formula:
GRM = Property Price / Gross Annual Rental Income
Where:
- Property Price: The total cost or market value of the investment property.
- Gross Annual Rental Income: The total rent collected from the property over a year, before any expenses (e.g., vacancy, operating costs).