Temelios

Gross Rent Multiplier (GRM) Calculator

Quick screening metric to compare deals across markets.

Divides the purchase price by annual gross rent to produce a multiple. Lower multiples indicate more income per dollar of price.

GRM is a fast first filter. A GRM above 15–20 in most markets signals a potentially overpriced property before you run a full analysis.

1
Enter purchase price: The total acquisition cost.
2
Enter annual gross rent: Monthly rent × 12.
3
Compare to local market GRMs: A lower GRM is better. Use rental comps to estimate realistic gross rent.

Purchase Price ($)

Annual Gross Rent ($)

Gross Rent Multiplier (GRM)11.11

•GRM benchmarks vary widely by market: under 8 is typically strong cash flow territory; 10–15 is moderate; above 15–20 suggests the property may be overpriced for income.
•Always use actual or achievable market rents — not seller-provided rents, which may include lease-up incentives or above-market tenants.
•Compare GRM to local comps, not national benchmarks. In high-cost coastal cities, a GRM of 20+ may be normal; in the Midwest, 10+ may be high.
•GRM ignores vacancy, expenses, and debt service — two properties with identical GRMs can have dramatically different cash flow. Always follow up with a full NOI analysis.
•GRM is best used as a quick first filter to eliminate obviously overpriced listings before you invest time in detailed underwriting.

Want the full picture?

These calculators use your assumptions. Temelios pulls real comps and census data so your vacancy, rent, and expense inputs are grounded in reality.