Value Based on GRM

Property value estimated using the gross rent multiplier.

Example Result

Sample Data

$385,000

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Value Based on GRM Formula

Gross Annual Rent x GRM

$34,200 x 11.26x

$385,000

What This Means

A sample property priced at $385,000 with $2,850/month rent has a value based on grm of $385,000. GRM-based valuation is a quick sanity check. By comparing the GRM-implied value to the actual asking price, you can quickly identify properties that may be over- or under-priced.

Where This Value Comes From

Value Based on GRM is not entered directly — it is calculated from Gross Rent Multiplier and Gross Potential Rent. See the formula breakdown above and the detailed inputs below.

Calculated From

Value Based on GRM is calculated using these inputs:

Gross Rent Multiplier

Purchase price divided by annual gross rent.

11.26x

Gross Potential Rent

Total annual rental income assuming full occupancy.

$34,200

Platform Distribution

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Why It Matters

GRM-based valuation is a quick sanity check. By comparing the GRM-implied value to the actual asking price, you can quickly identify properties that may be over- or under-priced.

Detailed Explanation

This valuation approach multiplies the property's gross annual rent by its GRM to estimate value. It is a simpler but less precise valuation method than cap rate analysis.