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Gross rent multiplier calculator
The quickest screen for a rental: price divided by a year of gross rent, and what the property is worth at the GRM of your area.
Gross rent multiplier
0
The price is 0 years of gross rent ($0 a year).
GRM ignores vacancy and expenses, so two properties with the same GRM can earn very different amounts. Use it to sort listings, then check the cap rate.
The formula
GRM = Price / Yearly gross rent
Value = Yearly gross rent x Market GRM
Finding your area's GRM
Take three to five rentals similar to yours that sold recently. For each, divide the sale price by its yearly rent, then take the middle value. A real estate agent or the listing history on property sites can give you both numbers.
Limits
Two houses with the same rent and price have the same GRM even if one has a $9,000 tax bill and the other $3,000. Before you make an offer, rebuild the net numbers with the rental property calculator.
Questions
What is the gross rent multiplier?
The price of a rental property divided by its yearly gross rent. A $300,000 house that rents for $2,500 a month ($30,000 a year) has a GRM of 10: it costs ten years of rent.
What is a good GRM?
Lower means more rent for each dollar of price. What counts as good depends on the market; compare with recent sales of similar rentals in the same area rather than with a national number.
GRM or cap rate?
GRM uses gross rent only, so it is quick but blind to expenses. Cap rate uses net operating income, after vacancy and expenses, so it is the better test once you have the numbers. Use GRM to sort many listings, cap rate to judge the few you like.
Next steps
Last updated November 5, 2026.