Gross Rent Multiplier

The gross rent multiplier (GRM) is a fast, rough comparison tool: how many years of gross rent would it take to equal the purchase price?

GRM = purchase_price / gross_annual_rent

A $500,000 property collecting $50,000 a year in gross rent has a GRM of 10.

Use it for sorting, not deciding

GRM ignores everything that makes deals different: operating expenses, vacancy, capital needs, financing, tenant quality, lease terms. Two properties with the same GRM can have wildly different cash flow. Compare GRM only between similar assets in the same market, as a first-pass screen for what deserves a real analysis. It's a quick filter, not a full analysis.

Where you'll see it in Rescover

Rescover skips the shortcut and runs the full math on every listing (cap rate, cash-on-cash, IRR from actual income and expense assumptions), so GRM becomes what it should be: a sanity check, not the verdict.