Valuation
Gross Rent Multiplier (GRM)
A concise definition for the California Real Estate Exam study guide.
Definition
GRM = Sale Price ÷ Gross Monthly Rent. To estimate value: Subject Rent × Market GRM = Estimated Value. GRM is a rough tool — it does NOT account for operating expenses.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 6: Valuation & Appraisal →