Tools and Tips for Real Estate Investors

Defining a Gross Rent Multiplier (GRM)

A lower Gross Rent Multiplier (GRM) represents a better investment opportunity.

GRM is effective for screening, valuing, and comparing investment opportunities. However, GRM analyzes properties based only on its gross income and does not factor in expenses (property taxes, insurance, utilities, etc.)

The (GRM) is easily calculated but is not a very accurate tool for getting to a true value. However, it is an excellent quick value assessment method to see if further, and more detailed analysis is worthwhile. If the GRM is too high or low compared to recent comparable sold properties, it probably indicates a problem with the property or over-pricing.

You can use the calculator too quickly calculate GRM.