Metrics
GRM (Gross Rent Multiplier)
Property price ÷ annual gross rent. The simplest screening ratio in real estate — no expense data required.
6–10 is healthy in cash-flow markets. 10–14 is balanced. 14–20 is appreciation territory. 20+ is luxury / ultra-coastal.
How it's calculated
GRM = Property Price ÷ Annual Gross RentExample
A $300,000 property renting for $2,500/mo ($30,000/yr) has a GRM of $300,000 ÷ $30,000 = 10.0.
Why GRM (Gross Rent Multiplier) matters
GRM is the fastest triage filter there is — you can compute it from a listing price and a rent estimate alone, with zero expense data. Lower is better. Use it to shrink a 200-listing search down to the 20 worth underwriting properly.
Run the math on a real deal
TrueCap has a free calculator for this. Paste an address or enter numbers manually — get GRM (Gross Rent Multiplier) plus all the supporting metrics in 60 seconds.
Try the free GRM (Gross Rent Multiplier) calculatorRelated terms
Cap Rate
Net Operating Income ÷ property value. The unleveraged return a property generates, independent of f…
1% Rule
Rule of thumb: monthly rent should equal at least 1% of purchase price. A 5-second screening filter,…
NOI (Net Operating Income)
Gross annual rent minus all operating expenses, before debt service and income tax.
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