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Valuation Term

GRM

Gross rent multiplier explained for apartment owners reviewing price against income.

By Don Favia · Updated July 3, 2026

Direct Answer

GRM, or gross rent multiplier, compares a building's price to its gross scheduled rent. It is a quick screening metric, not a full valuation. Buyers still need to review expenses, rent control, vacancies, condition, and actual NOI.

Why It Matters

GRM helps buyers compare buildings quickly, especially when expenses are incomplete. It becomes less useful when buildings have very different expense loads, rent control exposure, or vacancy patterns.

Seller Example

Two buildings with the same gross rent may not be worth the same amount. If one has higher expenses or lower-quality income, buyers may apply a lower GRM after diligence.