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Gross Rent Multiplier Formula

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Gross Rent Multiplier is a real estate metric used to estimate the value of a property based on its gross rental income relative to its sale price. Check FAQs
GRM=PVGRI
GRM - Gross Rent Multiplier?PV - Property Value?GRI - Potential Gross Rental Income?

Gross Rent Multiplier Example

With values
With units
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Here is how the Gross Rent Multiplier equation looks like with Values.

Here is how the Gross Rent Multiplier equation looks like with Units.

Here is how the Gross Rent Multiplier equation looks like.

17.9991Edit=418120Edit23230Edit
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HomeIcon Home » Category Financial » Category Mortgage and Real Estate » Category Important Formulas of Mortgage and Real Estate » fx Gross Rent Multiplier

Gross Rent Multiplier Solution

Follow our step by step solution on how to calculate Gross Rent Multiplier?

FIRST Step Consider the formula
GRM=PVGRI
Next Step Substitute values of Variables
∴ GRM=41812023230
Next Step Prepare to Evaluate
∴ GRM=41812023230
Next Step Evaluate
∴GRM=17.9991390443392
LAST Step Rounding Answer
∴GRM=17.9991

Gross Rent Multiplier Formula Elements

Variables
Gross Rent Multiplier
Gross Rent Multiplier is a real estate metric used to estimate the value of a property based on its gross rental income relative to its sale price.
Symbol: GRM
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Gross Rent MultiplierOpen Variable
Property Value
Property Value refers to the estimated monetary worth of a real estate asset or property at a given point in time.
Symbol: PV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Property ValueOpen Variable
Potential Gross Rental Income
Potential Gross Rental Income refers to the total revenue a property could generate if all units were rented at their maximum achievable rental rates, without factoring in collection losses.
Symbol: GRI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Potential Gross Rental IncomeOpen Variable

Other formulas in Important Formulas of Mortgage and Real Estate category

​Go Monthly Mortgage Payment
p=MA⋅R⋅(1+R)n(1+R)n-1
​Go Debt Ratio
DR=TDTA
​Go Rental Yield
RY=(ARIPV)⋅100
​Go Price per Square Foot
Psqf=PSPTsqf

How to Evaluate Gross Rent Multiplier?

Gross Rent Multiplier evaluator uses Gross Rent Multiplier = Property Value/Potential Gross Rental Income to evaluate the Gross Rent Multiplier, The Gross Rent Multiplier is a real estate metric used to estimate the value of a property based on its gross rental income relative to its sale price. Gross Rent Multiplier is denoted by GRM symbol.

How to evaluate Gross Rent Multiplier using this online evaluator? To use this online evaluator for Gross Rent Multiplier, enter Property Value (PV) & Potential Gross Rental Income (GRI) and hit the calculate button.

FAQs on Gross Rent Multiplier

What is the formula to find Gross Rent Multiplier?
The formula of Gross Rent Multiplier is expressed as Gross Rent Multiplier = Property Value/Potential Gross Rental Income. Here is an example- 18.17913 = 418120/23230.
How to calculate Gross Rent Multiplier?
With Property Value (PV) & Potential Gross Rental Income (GRI) we can find Gross Rent Multiplier using the formula - Gross Rent Multiplier = Property Value/Potential Gross Rental Income.
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