Jinsi ya kukokotoa Gross Rent Multiplier Calc
Gross Rent Multiplier Calc ni nini?
Calculates gross rent multiplier (GRM) comparing purchase price to annual rental income. Quick valuation metric.
Fomula
GRM = Purchase Price ÷ Gross Annual Rental Income
- GRM
- rough cap rate — rough cap rate
Mwongozo wa Hatua kwa Hatua
- 1GRM = Purchase Price ÷ Gross Annual Rental Income
- 2Lower GRM = better value (lower price relative to income)
- 3Typical range 4-7; varies by market
- 4Quick estimate: 1 ÷ GRM = rough cap rate
Mifano Iliyotatuliwa
Ingizo
Price $300k, rent $2k
Matokeo
GRM 150
Makosa ya Kawaida ya Kuepuka
- ✕Using annual income instead of monthly (must multiply)
- ✕Comparing across markets with different expenses
- ✕Using for expense-heavy properties
Maswali yanayoulizwa mara kwa mara
Is GRM the same as cap rate?
No; GRM uses gross income (doesn't account for expenses); cap rate uses NOI (accounts for expenses).
When should I use GRM vs. cap rate?
GRM: quick comparison, residential; cap rate: accurate analysis, accounting for expenses.