gross rent multiplier. The relationship or ratio between the sale price or value of a property and its gross rental income.

Gross Rent Multiplier. Sales Price/Monthly Rental Income Example of GRM usage: Say, recent sales of properties similar to the subject property you are evaluating, had GRM's of 110 to 130. If the subject property has rental income of $3,000 per month, the property would roughly be valued at $330,000 conservatively to $390,000 aggresively.

Gross Rent Multiplier. A method of estimating or expressing a property's value as a multiple of its gross rental income.

GROSS RENT MULTIPLES. Sales price or value divided by gross annual income. For example, if sales price is $325,000 and gross annual income is $50,000, the G.R.M. is 6.5 ($325,000 divided by $50,000). It is a "rule of thumb" used by many investors who set their own individual standards or derive it from the market.

gross rent multiplier. The figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value.

Gross Rent Multiplier, GRM does not cover expenses GRM = Sales price / Annual Gross Rents

Gross Rent Multipliers. The gross rent multiplier is arrived at by dividing the value of a property by its gross monthly or annual rent. A rule of thumb method of appraising income property in which a multiplication factor deemed appropriate by the appraiser is applied to gross monthly rents or gross annual rents.

Gross Rent Multiplier. A rule of thumb method frequently used by some individuals that arrives at an estimate of fair market value by multiplying gross rental income by a factor that varies with the type of property and its location.

Gross Rent Multiplier. The relationship between a property's price and the gross rental income that it generates. Used to establish a property's value within a specific geographic area.

gross rent multiplier. Comparing imputed market rents to estimate the value of residential real estate by the income approach.

Gross Rent Multiplier. The factor used by appraisers for the income method of valuing properties. Sales prices of comparable properties are divided by gross income (either monthly or annual) to arrive at typical GRM levels; the average or a representative GRM factor is used to estimate the market value of the subject property.

GROSS RENT MULTIPLIER. The sales price divided by the contract rental rate.

gross rent multiplier. -- View Real Estate Listings