What is Gross Rent Multiplier (GRM)?
Gross rent multiplier is a quick screening figure equal to a property’s price divided by its annual gross rental income. A lower GRM can indicate a better value relative to the rent it produces. It is a rough first filter, not a full analysis.
Example: A property priced at $600,000 that rents for $60,000 a year has a GRM of 10, which an investor compares with similar listings to screen deals.