What is gross rent multiplier?
A blunt quick screen for small rental properties: price ÷ gross annual rent. A $5M property with $500,000 of gross rent is a 10.0x GRM. Ignores vacancy, expenses, and income quality.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.