---
title: "GRM (Gross Rent Multiplier) — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/grm/
---

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# GRM (Gross Rent Multiplier)

Also called: gross rent multiplier

Property price divided by annual gross rent, a fast screening ratio that ignores expenses.

GRM is a first-pass filter for comparing similar properties in one market. A lower number means less price paid per dollar of rent.

It says nothing about expenses, so two properties with identical GRMs can perform very differently once taxes, insurance, and maintenance are counted. Screen with GRM, decide with NOI.

## Put a number on it

This term is an input in the calculator below.

- [GRM CalculatorCalculate gross rent multiplier from price and rent.](/calculators/grm/)

## Related terms

- [Cap rate (Capitalization rate)Net operating income divided by property value, the unlevered yield used to compare properties.](/glossary/cap-rate/)
- [NOI (Net Operating Income)Income after operating expenses but before debt service, taxes on income, and capital expenditures.](/glossary/noi/)
- [1% ruleA screening heuristic that monthly rent should be roughly one percent of purchase price.](/glossary/one-percent-rule/)

## More in Investing

- [1% rule](/glossary/one-percent-rule/)
- [1031 exchange](/glossary/1031-exchange/)
- [50% rule](/glossary/fifty-percent-rule/)
- [Appreciation](/glossary/appreciation/)
- [CAGR (Compound Annual Growth Rate)](/glossary/cagr/)
- [Cap rate (Capitalization rate)](/glossary/cap-rate/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)