What is GRM (Gross Rent Multiplier)?

What is GRM?

The Gross Rent Multiplier is a quick “how many years of rent does this price represent” figure:

GRM = Property Value / Annual Gross Rent

A property worth $650,000 renting for $26,000 a year has a GRM of 25x — the price is 25 times the annual gross rent.

Where you’ll see it

• Property → Cashflow tab — GRM for that property, using its current value and gross rent.
• Compare view — an optional column (off by default) so you can rank properties side by side.

How to read it

Lower GRM generally means the property is cheaper relative to the income it produces — more rent for the price you’re paying. Higher GRM means you’re paying more for each dollar of rent, often because the market is pricing in capital growth rather than income.

GRM is a fast screening tool, useful for comparing a shortlist of properties in the same area at a glance — it’s usually one of the first ratios investors calculate when assessing a new listing.

The main limitation

GRM uses gross rent — it ignores operating expenses entirely, so it says nothing about how much of that rent you actually keep. Two properties with the same GRM can have very different cashflow once you account for body corporate fees, land tax, or maintenance. Use GRM to shortlist, then look at Cap Rate, Net Yield, and the full Cashflow Summary before deciding.