Gross Rent Multiplier (GRM)

A ratio that shows the number of years it will take for the yearly rent to add up to the purchase price.

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Written by Cindy Bellford
Updated over a week ago

What Is It?

A rate of return of a rental property based on comparing the purchase price or market value to the yearly gross rent.

The gross rent multiplier shows the number of years it will take for the yearly gross rent to add up to the original purchase price.

How Is It Calculated?

Gross rent multiplier calculation formula

You can learn more about the Gross Rent Multiplier on our blog.

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