Work out gross rent multiplier instantly with clear inputs, formula shown and shareable results.
The gross rent multiplier is price divided by annual gross rent — a fast screening ratio for comparing properties before doing full expense analysis. Its reciprocal is the gross yield, which is why a lower multiplier means a cheaper income stream.
Gross rent multiplier
GRM = price / annual gross rent; gross yield = 1 / GRM
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
It needs only two numbers, so it screens a long list quickly. It is a filter, not a valuation.
It ignores operating expenses entirely, so two properties with the same GRM can have very different net income.