Price and annual rent

GRM = price / annual gross rent

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Gross rent multiplier

10.00x

Typical

Typical. Eight to twelve years of gross rent, where most US metros trade. Cash flow depends on expenses and financing.

$500,000 price / $50,000 gross rent

The math

Years of gross rent to equal the pricethat is what the GRM means
10.00
Monthly rent to pricethe 1% rule is a GRM of about 8.3
0.83%

Free grm calculator by GRMCalculator.com