Gross Rent Multiplier (GRM) Calculator
Real Estate ToolsCalculate the gross rent multiplier for quick property valuation and deal screening. Property price divided by gross annual rent provides a simple investment metric.
Calculate GRM
Enter property price and gross annual rent for quick valuation screening
GRM Formula
GRM = Property Price ÷ Gross Annual Rent
Lower GRM = Better potential return
Higher GRM = Higher price relative to rent
GRM Ranges
8: Excellent - Potentially undervalued
8-12: Good - Typical investment range
12-15: Fair - Average market pricing
15: High - May be overpriced
Limitations & Best Use
Quick deal screening tool
Ignores expenses: Use with cap rate for full analysis
Market dependent: Compare within same area
Supplement with other metrics: NOI, cash flow, IRR