{
  "id": "gross-rent-multiplier",
  "version": "ff4119e8bee9",
  "status": "published",
  "name": "Gross Rent Multiplier Calculator",
  "question": "What is the gross rent multiplier?",
  "summary": "Works out a rental property’s gross rent multiplier (price ÷ gross rent) on yearly or monthly rent, or the value or rent that a multiplier gives.",
  "category": "finance",
  "subcategory": "mortgage-and-real-estate",
  "url": "https://www.acalculator.org/finance/gross-rent-multiplier-calculator",
  "markdown": "https://www.acalculator.org/finance/gross-rent-multiplier-calculator.md",
  "kind": "function",
  "method": "Gross rent multiplier = price ÷ gross rent. Value = gross rent × gross rent multiplier. Rent = price ÷ gross rent multiplier. A multiplier on monthly rent = 12 × the multiplier on yearly rent.",
  "assumptions": [
    "Gross rent is all the rent before vacancy and expenses, for a year or a month as chosen; the multiplier is on the same basis.",
    "A gross rent multiplier from comparable sales is applied on the same basis it was found on.",
    "Arithmetic is exact on the typed decimals; money shows to the cent and multipliers to 2 decimals, halves rounded up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "find": {
        "title": "What do you want to find?",
        "description": "The multiplier from a price and rent, the value from a rent and multiplier, or the rent.",
        "type": "string",
        "enum": [
          "grm",
          "value",
          "rent"
        ]
      },
      "per": {
        "title": "Rent is",
        "description": "Whether the rent (and the multiplier) is for a year or for a month.",
        "type": "string",
        "enum": [
          "year",
          "month"
        ]
      },
      "price": {
        "title": "Price or value",
        "description": "The sale price or market value of the property.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0.01,
        "maximum": 1000000000000
      },
      "rent": {
        "title": "Gross rent",
        "description": "All the rent the property earns before expenses and vacancy, for a year or a month as chosen.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0.01,
        "maximum": 10000000000
      },
      "grm": {
        "title": "Gross rent multiplier",
        "description": "The multiplier, on the same basis as the rent: about 5 to 15 on yearly rent, 60 to 180 on monthly.",
        "type": "number",
        "minimum": 0.01,
        "maximum": 1000000
      }
    }
  },
  "outputs": {
    "grm": {
      "label": "Gross rent multiplier",
      "description": "Price ÷ gross rent, on the chosen basis.",
      "format": "number"
    },
    "price": {
      "label": "Value",
      "description": "Gross rent × gross rent multiplier.",
      "format": "money"
    },
    "rent": {
      "label": "Gross rent",
      "description": "Price ÷ gross rent multiplier, on the chosen basis.",
      "format": "money"
    },
    "other": {
      "label": "On the other basis",
      "description": "The multiplier on monthly rent (× 12) when the rent is yearly, or on yearly rent (÷ 12) when monthly.",
      "format": "number"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "find": "grm",
      "per": "year",
      "price": 300000,
      "rent": 30000,
      "grm": 10
    },
    "outputs": {
      "grm": 10,
      "other": 120
    },
    "text": "A price of $300,000.00 and gross rent of $30,000.00 give a gross rent multiplier of 10."
  },
  "examples": [
    {
      "given": {
        "find": "grm",
        "per": "month",
        "price": 60000,
        "rent": 525
      },
      "expect": {
        "grm": 114.28571428571429,
        "other": 9.523809523809524
      },
      "source": "Indiana Department of Local Government Finance, IN.gov FAQ on rental property (GRM = sale price ÷ monthly gross income; market value = monthly market rent × GRM; $60,000 ÷ $525 = 114; $600 × 114 = $68,400), https://faqs.in.gov/hc/en-us/articles/115005067007-I-own-a-rental-property-To-stay-competitive-I-cannot-raise-the-rent-What-can-I-do-to-help-offset-the-increases-in-property-taxes: $60,000 ÷ $525 = 114 (rounded there)"
    },
    {
      "given": {
        "find": "value",
        "per": "month",
        "rent": 600,
        "grm": 114
      },
      "expect": {
        "price": 68400,
        "other": 9.5
      },
      "source": "Indiana Department of Local Government Finance, IN.gov FAQ on rental property (GRM = sale price ÷ monthly gross income; market value = monthly market rent × GRM; $60,000 ÷ $525 = 114; $600 × 114 = $68,400), https://faqs.in.gov/hc/en-us/articles/115005067007-I-own-a-rental-property-To-stay-competitive-I-cannot-raise-the-rent-What-can-I-do-to-help-offset-the-increases-in-property-taxes: $600 × 114 = $68,400"
    },
    {
      "given": {
        "find": "grm",
        "per": "year",
        "price": 850000,
        "rent": 126000
      },
      "expect": {
        "grm": 6.746031746031746,
        "other": 80.95238095238095
      },
      "source": "California State Board of Equalization, Appraisal Training, Lesson 9, Multipliers: Derivation and Valuation (sale price ÷ annual gross income; $850,000 ÷ $126,000 = 6.75), https://www.boe.ca.gov/info/iav/lesson9.htm: $850,000 ÷ $126,000 = 6.75 (rounded there)"
    },
    {
      "given": {
        "find": "rent",
        "per": "year",
        "price": 300000,
        "grm": 8
      },
      "expect": {
        "rent": 37500,
        "other": 96
      },
      "source": "hand calculation in content.mdx; Python 3 check in docs/progress/WP-137/xcheck.py: 300,000 ÷ 8 = 37,500 a year; 8 × 12 = 96 on monthly rent"
    }
  ],
  "sources": [
    "Indiana Department of Local Government Finance, IN.gov FAQ, I own a rental property (updated December 12, 2022): gross rent multiplier = sale price ÷ monthly gross income; market value = monthly market rent × GRM; $60,000 ÷ $525 = 114; $600 × 114 = $68,400. https://faqs.in.gov/hc/en-us/articles/115005067007-I-own-a-rental-property-To-stay-competitive-I-cannot-raise-the-rent-What-can-I-do-to-help-offset-the-increases-in-property-taxes (retrieved 2026-10-19)",
    "California State Board of Equalization, Appraisal Training, Lesson 9, Multipliers: Derivation and Valuation: a multiplier is the sale price ÷ gross income, applied by multiplying income by it; the gross income multiplier usually uses yearly income, monthly multipliers are sometimes used; $850,000 ÷ $126,000 = 6.75. https://www.boe.ca.gov/info/iav/lesson9.htm (retrieved 2026-10-19)",
    "Fannie Mae, Selling Guide B4-1.3-10, Cost and Income Approach to Value (06/04/2025): the income approach is required for 2- to 4-unit properties, and the appraisal must include the comparable rental and sales data and the gross rent multiplier calculations. https://selling-guide.fanniemae.com/sel/b4-1.3-10/cost-and-income-approach-value (retrieved 2026-10-19)"
  ],
  "related": [
    "cap-rate",
    "rental-property",
    "rental-property-depreciation"
  ],
  "changelog": []
}