Definition
Property price divided by gross annual rental income, a quick screening ratio that ignores expenses.
Example
A $1,200,000 price on $150,000 of gross rent gives a GRM of 8.0.
Related terms
Frequently asked questions
What does Gross Rent Multiplier mean in real estate?
Property price divided by gross annual rental income, a quick screening ratio that ignores expenses.
How is Gross Rent Multiplier used in practice?
A $1,200,000 price on $150,000 of gross rent gives a GRM of 8.0.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.