Gross Rent Multiplier: $150,000 Property / $18,000 Rent
A $150,000 property earning $18,000 annually has a Gross Rent Multiplier of 8.33.
How to use this tool
- Enter property price and annual gross rent in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your gross rent multiplier and the full breakdown beneath it.
Evaluate a budget rental property's income efficiency with a GRM calculation for a $150,000 property at $1,500/month rent.
Frequently asked questions
- What is a good GRM?
- Lower GRMs are better for investors. GRM of 4–7 is excellent; 8–12 is typical for many markets; above 15 makes it difficult to generate positive cash flow. Compare GRM within the same market for useful benchmarks.
- How is GRM different from cap rate?
- GRM uses gross rent (no expense deductions), making it a quick screen. Cap rate uses Net Operating Income (after expenses), making it more accurate. Use GRM to filter prospects; use cap rate for deeper analysis.