When you’re looking for comparable properties a nice added metric to look at is the Gross Rent Multiplier (GRM). GRM = Price ÷ Annual Rent Get the average rent for the neighbourhood and calculate the GRM for each comparable property and the target property. For example, if the target property is priced at $500,000 and generates $30,000 in annual rent, the GRM is 16.67. If similar properties have a GRM of 14, the target may be overpriced. The lower the GRM the better from an investment standpoint. This is just one of many great ways to gauge if a property is overpriced, underpriced, or if it’s priced competitively.

Posted by Adam Robinson at 2025-06-30 09:11:15 UTC