Gross Rent Multiplier (GRM)


Definition of "Gross rent multiplier (GRM)"

Judy Kolodgie real estate agent
Judy Kolodgie, Real Estate Agent ERA Cole Realty

The percentage of the selling price of property to its gross rental income. It is used to value an income-producing property. For example, if the selling price of property was $400,000 and the gross rental income was %100,000, the GRM would be 4 times.

 

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