The Gross Rent Multiplier or GRM is a ratio that is used to estimate the value of income producing properties. The GRM provides a rough estimate of value. Only two pieces of financial information are required to calculate the Gross Rent Multiplier for a property, the sales price and the total gross rents possible.

For Example:

GRM Monthly = Sales Price / Monthly Gross Income

The Gross Rent Multiplier is often called Gross Income Multiplier (GIM)