# Gross Rent Multiplier

*Real Estate — Finicade finance glossary*

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`

**Also known as:** GRM, price to rent ratio

**Related terms:** [Cap Rate](https://finicade.com/glossary/cap-rate), [Rental Yield](https://finicade.com/glossary/rental-yield), [Net Operating Income](https://finicade.com/glossary/net-operating-income), [Rental Property](https://finicade.com/glossary/rental-property), [Comparative Market Analysis](https://finicade.com/glossary/comparative-market-analysis)

Source: https://finicade.com/glossary/gross-rent-multiplier