Gross Rent Multiplier Rechner — Formel

How the Gross Rent Multiplier Works

The GRM is a screening tool that compares a property's price to its gross rental income without factoring expenses.

Formula

GRM = Purchase Price / Annual Gross Rental Income

Usage

  • Lower GRM values suggest a property may generate better returns relative to its price
  • GRM does not account for operating expenses, vacancies, or financing
  • Best used for quick side-by-side comparison of similar properties in the same market

    • Lösungsbeispiel

    A property is listed at $400,000 and rents for $3,200 per month.

    1. Calculate annual gross rent: $3,200 x 12 = $38,400
    2. GRM = $400,000 / $38,400 = 10.42
    3. A GRM of 10.42 means it takes about 10.4 years of gross rent to equal the purchase price
    4. At a GRM of 10, the implied price would be $38,400 x 10 = $384,000