Cinna RE Start free
Valuation & AppraisalNational portion

GRM & GIM — Quick-and-Dirty MultipliersReal estate exam study notes

Multipliers shortcut the income approach for small properties.

4 key facts 1 practice questions Reviewed Oct 2026
Test yourself Save in app
The 1-minute sheetCinna RE

Key ideas

  • Multipliers shortcut the income approach for small properties.
  • The Gross RENT Multiplier (GRM) uses MONTHLY rent: GRM = sale price ÷ monthly gross rent, so a $240,000 house renting for $1,600 has a GRM of 150; apply a neighborhood GRM to a subject's rent to estimate value.
  • The Gross INCOME Multiplier (GIM) uses ANNUAL income for larger or commercial properties.
  • Multipliers use GROSS figures — no expenses subtracted — which is both their speed and their weakness: two buildings with equal rents but different expense loads look identical to a GRM.

Before you read

Test yourself first: 1 question

Question 1 of 1

The gross rent multiplier (GRM) is calculated as:

What you need to know

The Gross RENT Multiplier (GRM) uses MONTHLY rent: GRM = sale price ÷ monthly gross rent, so a $240,000 house renting for $1,600 has a GRM of 150; apply a neighborhood GRM to a subject's rent to estimate value. The Gross INCOME Multiplier (GIM) uses ANNUAL income for larger or commercial properties. Multipliers use GROSS figures — no expenses subtracted — which is both their speed and their weakness: two buildings with equal rents but different expense loads look identical to a GRM.

GRM & GIM — Quick-and-Dirty Multipliers: FAQs

Is GRM & GIM — Quick-and-Dirty Multipliers on the real estate exam?

Yes. Valuation & Appraisal is a scored domain on the real estate licensing exam, and this topic appears in the national portion.

Is this cheat sheet free?

Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.

Cinna RE website
Cinna RE app: the study feed with a practice question
Study GRM & GIM — Quick-and-Dirty Multipliers in the appNational and state questions for 25 states, each with a rationale, plus timed mock exams.See how Cinna RE works
Start free
Was this helpful?

Free to start

Know valuation cold

National and state questions for 25 states, each with a rationale, plus timed mock exams.

  • National + state questions for 25 states
  • Rationale on every answer
  • Timed mock exams
  • 500+ cheat sheets
Start free on the web Download on theApp Store Get it onGoogle Play
See how Cinna RE works
Cinna RE website
Cinna RE app: the study feed with a practice question