Gross Rent Multiplier Grm


Definition of "Gross rent multiplier (GRM)"

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.



Search Real Estate Glossary

 

Related Real Estate Glossary terms

Unencumbered

Real property that is without any obligations, liens, or anything else against it. It is free and cl ...

Conversion Option

The option to convert an ARM to an FRM at some point during its life. ...

Group Permanent Life Insurance

Coverage following the same structure as group term, the significant difference being that premiums ...

Home Equity Line Of Credit (HELOC)

A mortgage set up as a line of credit against which a borrower can draw up to a maximum amount, as o ...

Acceleration Clause

A clause inserted in a mortgage, note, bond, deed of trust, or other credit vehicle that allows the ...

Disappearing Deductible

In property insurance, amount that an insured does not have to pay when a loss exceeds a predetermin ...

Related Real Estate FAQ

What Is A Maintenance Fee?

A maintenance fee is a charge by condominium associations, co-ops, or other homeowners associations ...

What Is An Appreciation?

Changes in the market conditions, or improvements to the property that increase the value of the pro ...

What Is An Annuity?

An annuity is a long-term, interest-paying contract offered through an insurance company or financia ...

How Big Is An Acre?

An acre is an area of land equal to 43,560 square feet. For visuality purposes, an acre is most oft ...

What Is A VA Loan?

A VA loan is a type of loan available to veterans and guaranteed by the Department of Veterans\' Aff ...

What Does FSBO Mean?

FSBO means for sale by owner. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Home Prices - The Extra Costs How is Square Footage Determined? Getting Ready to Sell? Don't make these DIY Mistakes! Short Sale Homes Is it better to buy or sell a home first

FAQ

What is an investment property? How much money can I borrow to buy a home? What is a survey? Do you have any tips to help me manage my investing? What is a subprime mortgage?