GRM (Gross Rent Multiplier)
Property price divided by annual gross rent. A $300K property renting for $30K/year has a 10x GRM. Quick valuation shorthand for rental properties.
Why it matters on a DSCR loan
GRM is best used as a first-pass screen when comparing rental markets or scanning listings — a lower multiplier generally signals stronger rent relative to price, which usually foreshadows an easier DSCR qualification. Its weakness is that it ignores expenses entirely, so two properties with identical GRMs can have very different taxes, insurance, and HOA loads and therefore very different DSCRs. Use GRM to shortlist deals, then run the actual rent-versus-PITIA math before writing an offer.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).