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What is Gross Rent Multiplier (GRM)?

What is Gross Rent Multiplier (GRM)?

May 15, 2025

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📈 Data Point

Multifamily Market Outlook

According to J.P. Morgan’s report, the multifamily housing market remains resilient across the U.S., particularly in cities with strong employment hubs and population inflows. Investors are zeroing in on metro areas with steady job growth, as these markets continue to support stable rent collection and occupancy rates. There's also a noticeable uptick in mid-tier and workforce housing developments to meet ongoing affordability concerns. In addition, tighter inventory and demand for rental units are keeping construction pipelines active in major metros. The report suggests that well-located multifamily assets will continue to perform well throughout 2025.

🧭 Market Watch

Gahanna, Ohio

The City of Gahanna is planning to annex an 8-acre parcel along U.S. Route 62, with a vision to develop a mix of commercial and multifamily housing. This initiative is part of a broader strategy to expand residential capacity while promoting smart, connected urban growth. Located just outside Columbus, Gahanna is drawing interest from developers due to its strategic location and access to major roadways. The proposed annexation aims to bring more housing options to the region while supporting local business expansion. As development pressure increases in Central Ohio, suburbs like Gahanna are positioning themselves as high-potential alternatives.

🧾 Rule of the Day

Gross Rent Multiplier (GRM)

Gross Rent Multiplier is a basic tool used to quickly evaluate a multifamily property's income potential. It’s calculated by dividing the property’s purchase price by its gross annual rental income. For example, a $1.2 million property with $120,000 in annual rent would have a GRM of 10. A lower GRM often indicates a faster return on investment, assuming stable rents and occupancy. While GRM is useful for quick comparisons, it doesn't account for expenses, so it’s best used alongside deeper financial analysis. Know more.

🌱 Green Build

Top Eco-Friendly Real Estate Markets

A Realtor.com report ranks the metros with the highest share of eco-friendly real estate listings, and California cities dominate the list. Yuba City, Vallejo, and Fresno lead the way, followed by Tucson, Arizona. Listings in these markets commonly feature energy-efficient windows, solar panels, smart thermostats, and other green upgrades. Buyers are increasingly prioritizing sustainability—both for long-term cost savings and environmental impact. This trend is reshaping demand in both single-family and multifamily segments. Know more.

🏘 Deal Radar

Austin, TX

Located in one of Austin’s most active corridors, this multifamily listing offers a well-positioned asset near the University of Texas and downtown job centers. The property presents a potential value-add opportunity with strong demographic support.

View the property.

Gardena, CA

This listing includes multiple renovated units with potential for cash flow and rental upside. Located near major freeways, shopping centers, and employment zones, the property benefits from solid connectivity and tenant appeal. .

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Piedmont, MO

This townhome portfolio includes multiple units across a stable, rent-friendly neighborhood in Missouri. The community's layout supports long-term tenancy and simple operations. The area has seen incremental growth with steady performance.