Gross Rent Multiplier Calculator
Calculate GRM to quickly screen and compare rental property investments.
GRM Calculator
GRM Formula
GRM = Property Price / Annual RentLower GRM = Better cash flow potential. Typical range: 4-20 depending on market.
Gross Rent Multiplier
10.42
Good Investment
Good GRM
This property is reasonably priced for rental income.
Property Details
Purchase Price$4,00,000
Monthly Rent$3,200
Annual Rent$38,400
GRM10.42
Implied Cap Rate (est.)~5.8%
Price at Different GRMs
| GRM | Max Price | Quality |
|---|---|---|
| 6 | $2,30,400 | Excellent |
| 8 | $3,07,200 | Excellent |
| 10 | $3,84,000 | Good |
| 12 | $4,60,800 | Good |
| 15 | $5,76,000 | Fair |
| 20 | $7,68,000 | Poor |
Required Rent for Target GRMs
| Target GRM | Monthly Rent |
|---|---|
| 6 | $5,556 |
| 8 | $4,167 |
| 10 | $3,333 |
| 12 | $2,778 |
| 15 | $2,222 |
| 20 | $1,667 |
Market GRM Benchmarks
High-Growth Markets12 - 20
Stable Markets8 - 14
Cash Flow Markets5 - 10
Luxury Properties15 - 25
Multi-Family7 - 12
GRM varies by location, property type, and market conditions. Lower GRM generally means better cash flow.
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