Gross Rent Multiplier Calculator

GRM typically ranges from 4-20, with lower values indicating faster investment recovery and potentially better returns

Urban properties in high-demand areas often have GRM of 8-15, while suburban or rural properties may range from 10-20+

GRM doesn't account for operating expenses, vacancies, or financing costs - use it for initial screening, not final decisions

Compare GRM across similar properties in the same neighborhood to identify relative value and potential investment opportunities

A lower GRM may indicate higher rental income relative to price, but could also signal property issues or market oversupply

GRM is most useful for comparing similar property types in similar markets - avoid comparing different property classes

Consider that appreciation-focused markets (like San Francisco) may have higher GRMs but stronger long-term value growth

Calculate GRM for multiple rent scenarios (conservative, market rate, optimistic) to understand investment sensitivity

Properties with GRM under 10 are generally considered strong rental investments in most U.S. markets

Use GRM alongside cap rate, cash-on-cash return, and IRR for comprehensive real estate investment analysis