Enter the property price and its gross annual rent. We compute the gross rent multiplier (GRM) — a fast way to screen and compare rental deals before deeper analysis.
This tool is provided for general educational and informational purposes only. It is not financial, tax, or investment advice and does not account for your specific situation. Confirm figures with your own analysis and a qualified professional before making decisions.
GRM is a property’s price divided by its gross annual rent. It’s a quick screening ratio for comparing rental properties before running a full cash-flow analysis.
GRM = property price ÷ gross annual rent. For example, a $250,000 property renting for $30,000 a year has a GRM of 8.33.
Lower is generally better for a buyer — many investors look for a GRM between 4 and 8, but the right range depends heavily on local market norms. Always compare to similar nearby properties.
GRM uses gross rent only, so it ignores operating expenses, vacancy, and financing. Use it for a first-pass screen, then confirm with cap rate and cash-on-cash return.
Free tool by Hatchkeep. Related: cap rate calculator · cash-on-cash return calculator · rental deal screener