Gross Rent Multiplier (GRM)

A rate of return of a rental vehicle based on comparing the purchase price or market value to the yearly gross rent.

The gross rent multiplier represents the number of years it would take for the yearly gross rent to add up to the original purchase price.

 

How Is It Calculated?

At Purchase:
GRM = Purchase Price / Yearly Gross Rent
 
Subsequent Years:
GRM = Market Value / Yearly Gross Rent

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