About this tool
GRM is a quick rule-of-thumb screening metric for rental properties. Lower GRM means rent recoups the price faster.
Formula
GRM = price / annualGrossRent
Worked example
$400,000 property, $36,000 annual rent → GRM = 11.1.
Notes
GRM ignores expenses, vacancy, and financing. Use cap rate or cash-on-cash return for deeper analysis. GRMs of 8–12 are common; below 8 may indicate a high-yielding (but risky) market.