Gross Rent Multiplier (GRM) Calculator

Calculate Gross Rent Multiplier to quickly compare rental properties. Lower GRM = better cash flow potential.

InputsShared

Property

Purchase Price

Monthly Rent

Pro Forma Price / ARV

Pro Forma Monthly Rent

As-Is GRMCurrent

Pro Forma GRM

Enter values to see results

Gross Rent Multiplier

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price ÷ annual rent

Annual Gross Rent

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Years to Pay Off

—

from gross rent

Implied Value

—

at 12× GRM

GRM Calculation

Purchase Price—

Annual Rent—

GRM = Price ÷ Annual Rent—

Market GRM Benchmarks

4–8×—

8–12×—

12–18×—

18–25×—

After plan

Enter values to see results

Pro Forma GRM

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GRM Improvement

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vs As-Is

Implied Value

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at 10× GRM

Price Difference

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ask vs implied

Pro Forma GRM

Pro Forma Price—

Pro Forma Annual Rent—

Pro Forma GRM—

GRM vs Price Analysis

At GRM 8× value is—

At GRM 10× value is—

At GRM 12× value is—

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Enter the purchase price and monthly rent. GRM = Price ÷ Annual Rent. Lower GRM means you're paying less per dollar of rent. Compare across markets to identify better deals.

GRM (Gross Rent Multiplier) is the simplest property comparison metric: Price ÷ Annual Gross Rent. A GRM of 10 means you're paying 10× annual rent. Midwest markets: 7–10×. Sun Belt: 10–15×. Coastal: 15–25×. Lower is generally better for cash flow.