Gross Rent Multiplier: $200,000 Property / $20,000 Rent
A $200,000 property earning $20,000 per year has a Gross Rent Multiplier of 10.
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.
Use the GRM calculator to evaluate a $200,000 rental property generating $20,000 in annual gross 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.