Gross Rent Multiplier (GRM) Calculator
Gross Rent Multiplier:
20.00
Understanding Gross Rent Multiplier (GRM)
What is GRM?
The Gross Rent Multiplier (GRM) is a quick method used by real estate investors to evaluate and compare potential investment properties. It represents how many years it would take for a property's gross rental income to equal its purchase price.
How to Interpret GRM
- Lower GRM = Better potential return on investment
- Higher GRM = Longer time to recoup investment
- Typical GRM range: 4-12 (varies by market)
Limitations
While GRM is useful for quick comparisons, it doesn't consider important factors like:
- Operating expenses
- Property condition
- Location quality
- Market trends