GRM (Gross Rent Multiplier)

Intermediate 🏠 Real Estate

Definition

Property price divided by annual rental income, a quick valuation metric for income-producing properties.

Example Usage

The rental property has a GRM of 12, meaning we'll break even in 12 years.

Origin

Real estate valuation terminology used for quick property analysis

Fun Fact

GRM ranges from 4-20 depending on market conditions, location, and property type.

Source: Real Estate Investment Analysis

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