Gross Rent Multiplier Calculator
The gross rent multiplier is a quick ratio of price to rent. Divide the price by the yearly rent to compare properties before any costs are counted.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
The gross rent multiplier is the price divided by the rent for a full year. The yearly rent is the monthly rent times twelve.
The ratio ignores running costs, vacancies and financing, so it is only a first look. A lower number means more rent for each unit of price.
Worked example
A property priced at $300,000.00 that rents for $2,500.00 a month has a gross rent multiplier of 10.
Questions
What is a good gross rent multiplier?
It varies by city and property type. Compare it with similar properties in the same area rather than with a fixed number.
Why does it leave out expenses?
It is meant as a quick first check. Costs need the net figures, which the cap rate and rental yield pages cover.
Does vacancy change the answer?
Not here. Use the rental property page if you want to allow for empty months.
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