Gross Rent Multiplier (GRM)

GRM is a simple calculation that compares a property’s price to its gross rental income. You calculate it by dividing the purchase price by the annual rent: Price ÷ Gross Rent = GRM. Investors use it as a quick screening tool—lower GRMs often mean higher income potential. But keep in mind, GRM doesn’t account for expenses like taxes or insurance, so it’s best used for comparing multiple deals, not final decisions. At Meridian, we help investors interpret GRM alongside deeper metrics like cash flow and cap rate to get the full picture.