reference
glossary.
25 terms
definition
A real estate investment metric calculated by dividing a property's purchase price by its gross annual rental income. This ratio helps investors quickly compare the relative value of different rental properties. A lower gross rent multiplier typically indicates a better investment opportunity, though market conditions vary by location.
examples
- —The duplex had a gross rent multiplier of 8.5, making it an attractive investment compared to similar properties.
- —Investors in this market typically look for properties with a gross rent multiplier below 10.
- —After calculating the gross rent multiplier at 12, the investor decided to look for better opportunities elsewhere.