Gross Rent Multiplier Calculator

The gross rent multiplier (GRM) is the price of a property divided by its yearly rent. It is a fast first screen: the lower the number, the more rent you get for the price.

Enter your figures below. Results update as you type.

Result

Gross rent multiplier11.11years of rent to equal the price

Monthly rent
$3,000.00
Monthly rent as a share of price
0.75%
Meets the 1% rule
No
Gross yield
9%

How the Gross Rent Multiplier calculation works

GRM = property price / gross yearly rent

A $400,000 property renting for $36,000 a year has a GRM of 11.11. The monthly rent of $3,000 is 0.75% of the price, which falls short of the 1% rule.

Frequently asked questions

What is a good gross rent multiplier?

Lower is better. Values between 4 and 8 are considered strong for cash flow, while 10 and above is common in expensive markets. Compare properties within the same area.

What is the 1% rule in real estate?

A quick test that the monthly rent should be at least 1% of the purchase price. A $400,000 property would need $4,000 a month. It ignores expenses, so use it only to shortlist.

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