Calculate the gross rent multiplier (GRM) and estimate property value from market GRM. Quick rental property screening tool.
Find from comparable sold properties
Lower = better deal
At GRM 10
| Property Value | $350,000 |
| Monthly Rent | $2,500 |
| Annual Gross Rent | $30,000 |
| Gross Rent Multiplier (GRM) | 11.67 |
| Gross Yield | 8.571428571428571% |
| Implied Value at GRM 10 | $300,000 |
| Difference | -$50,000 |
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GRM = Property Value ÷ Annual Gross Rent
Implied Value = Annual Rent × Market GRM
Gross Yield = Annual Rent ÷ Property Value × 100
GRM of 4–8 is generally desirable. Under 10 is often cited as the threshold for a potential deal. Very low GRMs (4–6) often indicate high-yield markets with lower appreciation. High GRMs (15–20+) are common in expensive cities like NYC or SF.
GRM = Property Price ÷ Annual Gross Rent. A GRM of 8 means the property costs 8x its annual rent — or it would take 8 years of gross rent to pay off (ignoring expenses).
GRM uses gross rent (no expense deduction) and is a quick screening tool. Cap rate uses NOI (after expenses) and is a more accurate measure of investment performance. Always use both together.
Look at comparable sold properties in the same market: divide each sale price by its annual rent. Average those to find the local market GRM. Then use it to estimate your property's value or screen new deals quickly.
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.