How to Calculate Gross Rent Multiplier (At Purchase)

Gross Rent Multiplier (At Purchase) – Measures the purchase price to its annual gross income. The GRM is the number of years it takes to pay for the purchase price via gross income.


   Purchase Price
÷ Gross Income (1st Year)
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= Gross Rent Multiplier (At Purchase)


$1,800,000
÷ $268,800
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= 6.7