Gross Rent Multiplier Calculator
Calculate the gross rent multiplier (GRM) and test the 1% rule to screen rental properties quickly.
Your numbers
- Rent-to-price ratio
- 0.81%
- Passes 1% rule?
- No
- Rent needed for 1% rule
- $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.