Gross Rent Multiplier Calculator

Calculate the gross rent multiplier (GRM) and test the 1% rule to screen rental properties quickly.

Your numbers

Gross rent multiplier10.26×
Rent-to-price ratio
0.81%
Passes 1% rule?
No
Rent needed for 1% rule
$3,200
Monthly rent vs 1% target
$0$1K$2K$3K$4KActual rent1% targetRent · Actual rent: $2,600Rent · 1% target: $3,200
  • Actual rent
  • 1% target

How the gross rent multiplier calculator works

GRM = purchase price ÷ annual gross rent. The 1% rule says monthly rent should be at least 1% of the price.

Example

Using the default inputs (Price: $320,000; Monthly rent: $2,600), the calculator returns gross rent multiplier of 10.26×. Change any field above to see your own result and charts update instantly.

Good for these goals

Frequently asked questions

What is a good GRM?

Lower is better; many markets range from 4 to 12.

Does the 1% rule still work?

It is rare in high-priced coastal markets; treat it as a rough filter only.

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Estimates are for educational purposes only and are not financial, tax or legal advice. Results depend on your inputs and simplified assumptions; tax figures reflect 2026 federal rules and may differ from your situation. See our disclaimer. © 2026 FinanzCalc.