Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the GRM, or Gross Rent Multiple?

April 26, 2017grm

0

Posted

What is the GRM, or Gross Rent Multiple?

1 Answer

0

Posted

Another quick-and-dirty way of calculating value is the GRM, or Gross Rent Multiple. GRM=Price/GrossIncome. If a property has a gross annual income of $100,000 (not including expenses) and sells for $500,000, the GRM is 5.0. Here, a higher GRM means a higher price for the property. Dallas blue-collar property averages run from 3.5 to 5.5. Higher-end stuff might bring 6.5 or so. California property may be 10+.