Gross Rent Multiplier

When it comes to analyzing an investment property, there are many metrics to consider. The gross rent multiplier (GRM) is one of those metrics. A key calculation for the value assessment of a real estate investment, the gross rent multiplier is found by dividing a property’s market value with the gross rental income it generates. Variations of the formula can help real estate investors find different things, but its main function is to serve as a quick value assessment tool. During a property search, there are many listings to go through. Real estate investors can’t waste their time by conducting a full analysis of every property they find. The GRM can serve as a quick screening tool and show interested buyers which properties are worth further analysis.