The ratio of property price to annual gross rental income.
Gross Rent Multiplier is a quick screening tool that compares a property's price to its gross annual rent. Unlike cap rate, GRM ignores operating expenses, making it useful for fast comparisons but less precise. A lower GRM generally indicates better value, though it doesn't account for differences in expense ratios between properties.
GRM = Property Price ÷ Annual Gross Rental IncomeGRM equals the property price divided by the gross annual rent it produces.
A property listed at $300,000 generates $30,000 in annual gross rent. GRM = $300,000 ÷ $30,000 = 10. This means the property's price equals 10 years of gross rent.
Richify automatically calculates gross rent multiplier (grm) and other key real estate metrics for every property in your portfolio. Instead of plugging numbers into spreadsheets, you get instant analysis with built-in AI-powered insights to help you spot trends and opportunities across your holdings.
A property's annual net operating income as a percentage of its purchase price.
The ratio of a property's purchase price to its annual rental income.
The annual rental income from a property expressed as a percentage of its value.
The process of determining a property's market value using one or more standardized methods.
Stop calculating real estate metrics by hand. Richify computes gross rent multiplier (grm) and 10+ other key metrics for every property in your portfolio.
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