What is Gross Rent Multiplier (GRM)? | REAL-ESTATE-SALESPERSON Exam Prep

The Gross Rent Multiplier (GRM) is a property valuation metric calculated by dividing the property price by its annual gross rental income, providing a quick method to compare investment properties and estimate how many years of gross rent would equal the purchase price. 📚 Learn more about Gross Rent Multiplier (GRM) and other key terms for your REAL-ESTATE-SALESPERSON exam at Open Exam Prep. 🎯 This term appears on: REAL-ESTATE-SALESPERSON 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Gross Rent Multiplier (GRM) definition: https://www.open-exam-prep.com/glossary/gross-rent-multiplier 💡 Exam Tip: GRM = Price / Annual Gross Rent. Lower = potentially better value. Major limitation: ignores expenses! Cap rate (uses NOI) is more accurate. GRM is for QUICK comparisons only. --- #real-estate #examprep #financeexam #real-estate-salesperson