Gross Rent Multiplier (GRM): Screening Deals Quickly

The Quick Screen

The Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income. It is the fastest way to see if a property is overpriced compared to its neighbors.

The formula is: $$GRM = \frac{\text{Property Price}}{\text{Gross Annual Rental Income}}$$

In 2026, a "good" GRM in Ruaka might be around 10-12, whereas in Kileleshwa, where prices are higher relative to rent, you might see 15-18.