Gross Rent Multiplier
Also called: GRM, price to rent ratio
The gross rent multiplier is price divided by annual gross rent — a quick screen that ignores expenses entirely. It's useful for triaging a list of properties in the same market where cost structures are similar, and misleading across markets where taxes and insurance differ sharply. Anything it flags still needs a full NOI before an offer.
Formula
GRM = Purchase price ÷ Gross annual rent