Gross Rent Multiplier (GRM) Calculator

How to use this calculator

Enter the property price and the monthly gross rent. The calculator annualizes the rent, returns the gross rent multiplier instantly, and shows the implied price across common multiples so you can quickly judge whether a listing is in range.

What the metrics mean

• Gross rent multiplier (GRM) — property price divided by annual gross rent.
• Annual gross rent — monthly rent times twelve, before any expenses or vacancy.
• Implied price — annual gross rent times a target GRM — a fast value estimate.

Frequently asked questions

How do you calculate gross rent multiplier?

GRM = property price ÷ annual gross rent. For example, a $320,000 property renting for $2,600 a month ($31,200 a year) has a GRM of about 10.3.

What is a good gross rent multiplier?

Lower is generally better because it means a faster gross payback. Many markets fall between 4× and 8×, but acceptable GRM varies widely by location and property type.

Is GRM the same as cap rate?

No. GRM uses gross rent and ignores expenses, vacancy, and financing, so it is a faster but rougher screen. Cap rate uses net operating income and gives a truer return picture.

When should I use GRM?

Use GRM to quickly compare a lot of listings or estimate value from rent. Once a property passes the screen, run a full underwrite with expenses and financing.

Screening listings in bulk? dre1mery.com ranks incoming deals on rent multiples and full underwriting automatically.