Gross Rent Multiplier (GRM) Calculator 2027

Calculate GRM 2027 — quick rental property screening: Price / Annual Rent. GRM 6-10 = good buy in most markets. Simpler than cap rate for initial filter.

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GRM Formula

Price / Annual Gross Rent. Simplest rental metric. Ignores operating expenses (use cap rate for that). Quick filter for hundreds of listings.

GRM Benchmarks

8 or below: exceptional (rare in 2026). 9-11: good buy. 12-14: fair. 15+: overpriced unless major upside (rent increase opportunity, fix-and-rent).

GRM vs Cap Rate

GRM uses GROSS rent (before expenses). Cap rate uses NOI (after expenses). GRM faster for screening but assumes uniform expense ratio. Cap rate more accurate but slower.

Market-Specific Caveat

Hot markets (SF, NYC) often have GRM 18-25 because of expected appreciation. Rural buy-and-hold markets GRM 6-9 with no appreciation. GRM benchmarks vary by market drastically.

Source: nar.realtor commercial valuation, biggerpockets.com GRM analysis. Last updated: May 2026.