Calculate GRM — property price divided by gross annual rental income
What This Means For You
Get a personalized explanation of these results — what they actually mean for your situation, and how small changes would affect them.
How it works
Divides a property price by its annual gross rent to give a rough valuation multiple. It needs only two numbers, which makes it useful for filtering a long list of listings before you obtain real expense data.
GRM = Property price / Annual gross rent Implied price = GRM × Annual gross rent
Annual gross rentscheduled rent for a full year before vacancy or expensesGRMyears of gross rent the price represents
- Annual gross rent: 1,650 × 12 = 19,800
- 285,000 / 19,800
- Lower is cheaper. Typical residential GRMs run about 4 to 7 in low-cost markets and 12 to 20 in expensive metros, so comparisons only mean anything within one submarket.
- GRM ignores operating expenses entirely, so it silently favours properties where the tenant pays utilities and penalises none of the expensive ones. Two properties at the same GRM can have very different NOI.
- The reciprocal, 1 / GRM, is a gross yield. A GRM of 14.4 corresponds to a 6.95% gross yield.
- Some brokers quote a monthly GRM using one month of rent rather than twelve. Confirm which convention a listing uses before comparing.
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Frequently Asked Questions
Yes. Gross Rent Multiplier costs nothing, needs no account, and runs right in your browser. There is no paywall, no watermark on the results, and no limit on how many times you can run the numbers.
Gross Rent Multiplier uses the standard formula for this kind of calculation, so the output is only as good as the figures you type in. Rates, fees, and rules in finance shift over time, and we review the underlying assumptions on a regular schedule; check the "Last reviewed" date above for the most recent pass. Spotted something off? There's a feedback button in the bottom-right corner.
Treat the output of Gross Rent Multiplier as a starting point, not final advice. Tax filings, loan approvals, insurance claims, property deals, and legal matters all depend on details a calculator cannot see: your full financial picture, local rules, and the specifics of your paperwork. Run the numbers here, then confirm anything consequential with an accountant, lawyer, or licensed advisor.