A property’s price divided by its annual gross scheduled rent.
What gross rent multiplier means in practice
GRM is a fast screening metric, but it ignores vacancies, operating costs, financing, and capital needs. It is most useful when comparing similar properties in the same market before doing deeper underwriting.
Example
A $360,000 property with $36,000 of annual scheduled rent has a GRM of 10.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.