Gross Rent Multiplier Calculator

Updated: Jun 2, 2018

Gross Rent Multiplier Calculator is used to calculate the Gross Rent Multiplier of a real estate property

Gross Rent Multiplier:
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Background Information

What does GRM mean?
The gross rent multiplier is also called as the gross rate multiplier, or gross income multiplier (GIM). It is the number of years the property would take to pay for itself in gross received rent. It considers additional sources of income like onsite coin laundry.
Formula
Gross Rent Multiplier = Property Price / Gross Rental Income
Example

Let’s say a 4-unit building with an asking price of $400,000 and gross annual rents of $38,400. According, to the formula, GRM would be:-

  • GRM = $400,000/$38,400

Therefore, Gross Rent Multiplier = 10.42

 

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History

May 22, 2018
Tool Launched