CalculateRealEstateROI

ROI Metrics

Gross Rent Multiplier (GRM)

Purchase price divided by annual gross rent, used as a quick screening metric.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Years of gross rent it would take to equal the price. Lower = better value, but ignores expenses.

Formula

GRM = Price / Annual Gross Rent

Examples

  • $200k price ÷ $24k rent = GRM of 8.3.
  • Healthy investor markets: 6-10.

Common mistakes

  • Treating GRM as a substitute for cap rate or CoC.

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