Canadian gross rent multiplier calculator
GRM is the fastest screen you have: price divided by yearly rent. A lower number means you pay less for each dollar of rent. Use it to sort a list, then dig into the winners.
GRM screens. BrickROI decides.
GRM tells you which deals deserve a second look. BrickROI runs the second look on your real listing: cap rate, cash flow, DSCR, the CMHC and MLI Select paths, and a lender-ready PDF. Paste a Canadian listing and see it in two minutes.
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How to use GRM on Canadian deals
The gross rent multiplier is the quickest number in real estate. You divide the price by the gross annual rent. A $580,000 property renting for $3,200 a month has a GRM near 15. The lower the GRM, the less you pay for each dollar of rent the property brings in. That is all it measures.
Because it is so simple, GRM is great for one job: sorting a long list of listings fast. When you have twenty properties open in tabs, GRM lets you rank them in a minute and decide which five are worth a real look. It is the first filter, not the decision.
Where GRM lies to you
GRM ignores costs. Two properties with the same GRM can be miles apart once you add property tax, insurance, and maintenance. A building in a high mill-rate city like Hamilton can look identical to a low-tax one on GRM, then come in much weaker on cap rate. GRM also ignores the mortgage, so it says nothing about cash flow or DSCR.
Use it the right way
- Compare GRM only within the same market. A Toronto GRM and a Moncton GRM are not the same animal.
- Treat a low GRM as a reason to look closer, not a reason to buy.
- Run cap rate and cash flow on every deal that survives the GRM screen.
Gross rent multiplier questions
What is the gross rent multiplier?
GRM is the purchase price divided by the gross annual rent. It is a fast screen. A lower GRM means you pay less for each dollar of rent. It ignores costs and the mortgage, so it is a first filter, not a final answer.
What is a good GRM in Canada?
It depends heavily on the market. In cheaper Canadian cities you might see a GRM near 10 to 14. In Toronto and Vancouver it runs much higher because prices are high relative to rent. Compare GRM within a market, not across very different ones.
How is GRM different from cap rate?
GRM uses gross rent and ignores all costs. Cap rate uses net operating income, so it accounts for taxes, insurance, and the rest. GRM is faster but blunter. Use GRM to screen a list, then run cap rate on the survivors.
Can I rank deals by GRM alone?
Only to sort a long list quickly. Two properties with the same GRM can have very different costs and very different cap rates. A high-tax building looks the same on GRM and worse on cap rate. Always confirm with the full numbers.