Gross Rent Multiplier (GRM)

Purchase price divided by annual gross rent. A fast back-of-envelope screen.

GRM is a quick comparison metric — useful for triaging a list of listings before underwriting in detail.

Formula: GRM = Price ÷ Annual Gross Rent.

Reading the number

Under 8: cash-flow market; deals likely pencil.
8–12: balanced; underwrite carefully.
Over 12: appreciation market; cash flow unlikely without 30%+ down.

GRM ignores expenses, taxes, and financing. Two properties with the same GRM can have very different cap rates depending on property tax and management cost.

Underwrite real deals with these numbers

PLINTH's marketplace shows verified cap rate, cash-on-cash, and NOI on every listing.

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