Property price divided by gross annual rent.
GRM is the quickest screening ratio in real estate — no expenses needed. Lower is generally better; it ignores costs, so use it to shortlist, not to decide.
Formula: GRM = Price ÷ Gross Annual Rent
Example: $450,000 price ÷ $43,200 annual rent = 10.4 GRM.
FAQ
What is GRM in simple terms?
GRM is the quickest screening ratio in real estate — no expenses needed. Lower is generally better; it ignores costs, so use it to shortlist, not to decide.
How is it calculated?
GRM = Price ÷ Gross Annual Rent. Example: $450,000 price ÷ $43,200 annual rent = 10.4 GRM.