{"id":1029,"date":"2026-08-29T01:16:24","date_gmt":"2026-08-29T05:16:24","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/"},"modified":"2026-08-29T01:32:20","modified_gmt":"2026-08-29T05:32:20","slug":"gross-rent-multiplier-by-city","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/","title":{"rendered":"Gross Rent Multiplier by City: Where to Find the Best Rental Deals (2026)"},"content":{"rendered":"<p>The gross rent multiplier by city ranges from 6.5 in Cleveland to 22+ in San Francisco \u2014 and that single number tells you more about a market&#8217;s investment potential than any listing photo. A GRM of 8 means you pay 8 years of gross rent to buy the property. A GRM of 20 means 20 years. Lower GRM = faster payoff = better cash flow potential. Here is the gross rent multiplier by city for the 20 most popular US investment markets in 2026, what the numbers actually mean, and how to use GRM to compare deals across different cities.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#What_Is_Gross_Rent_Multiplier_and_Why_It_Varies_by_City\" >What Is Gross Rent Multiplier and Why It Varies by City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Gross_Rent_Multiplier_by_City_2026_Data\" >Gross Rent Multiplier by City: 2026 Data<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Cash_Flow_Markets_GRM_Under_10\" >Cash Flow Markets (GRM Under 10)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Balanced_Markets_GRM_12%E2%80%9316\" >Balanced Markets (GRM 12\u201316)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Appreciation_Markets_GRM_Above_16\" >Appreciation Markets (GRM Above 16)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#How_to_Use_GRM_by_City_to_Compare_Markets\" >How to Use GRM by City to Compare Markets<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Step_1_Screen_Markets_by_GRM\" >Step 1: Screen Markets by GRM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Step_2_Compare_Within_a_GRM_Tier\" >Step 2: Compare Within a GRM Tier<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Step_3_Calculate_GRM_for_Your_Specific_Deal\" >Step 3: Calculate GRM for Your Specific Deal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Step_4_Run_Full_Analysis\" >Step 4: Run Full Analysis<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#GRM_vs_Cap_Rate_Which_to_Use_When_Comparing_Cities\" >GRM vs Cap Rate: Which to Use When Comparing Cities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Why_GRM_Is_Changing_in_2026\" >Why GRM Is Changing in 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#5_Mistakes_When_Using_GRM_to_Compare_Cities\" >5 Mistakes When Using GRM to Compare Cities<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#1_Comparing_GRM_Across_Different_Property_Types\" >1. Comparing GRM Across Different Property Types<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#2_Ignoring_Expense_Differences_Between_Cities\" >2. Ignoring Expense Differences Between Cities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#3_Using_Asking_Rent_Instead_of_Actual_Rent\" >3. Using Asking Rent Instead of Actual Rent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#4_Not_Accounting_for_Vacancy\" >4. Not Accounting for Vacancy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#5_Chasing_the_Lowest_GRM_Without_Risk_Analysis\" >5. Chasing the Lowest GRM Without Risk Analysis<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#What_is_a_good_gross_rent_multiplier_for_investment_property\" >What is a good gross rent multiplier for investment property?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Which_US_cities_have_the_lowest_gross_rent_multiplier_in_2026\" >Which US cities have the lowest gross rent multiplier in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#How_do_I_find_the_gross_rent_multiplier_for_my_zip_code\" >How do I find the gross rent multiplier for my zip code?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Is_GRM_or_cap_rate_better_for_comparing_rental_markets\" >Is GRM or cap rate better for comparing rental markets?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Why_is_gross_rent_multiplier_increasing_in_most_cities\" >Why is gross rent multiplier increasing in most cities?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/arvcalc.com\/blog\/gross-rent-multiplier-by-city\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Is_Gross_Rent_Multiplier_and_Why_It_Varies_by_City\"><\/span>What Is Gross Rent Multiplier and Why It Varies by City<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>GRM = Property Price \u00f7 Annual Gross Rent<\/strong><\/p>\n<p>A $200K property renting for $24,000\/year ($2,000\/month) has a GRM of 8.3. A $500K property renting for $30,000\/year ($2,500\/month) has a GRM of 16.7. The lower the GRM, the more rent you collect relative to what you paid.<\/p>\n<p>GRM varies dramatically by city because property prices and rents do not scale proportionally. In Cleveland, a $150K house rents for $1,250\/month \u2014 prices are low relative to rents. In Austin, a $400K house rents for $2,200\/month \u2014 prices are high relative to rents. Same rent-earning asset, completely different economics. Calculate your specific deal in the <a href=\"\/gross-rent-multiplier-calculator\">GRM calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Gross_Rent_Multiplier_by_City_2026_Data\"><\/span>Gross Rent Multiplier by City: 2026 Data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Based on median home prices and median rents from <a href=\"https:\/\/www.zillow.com\/research\/data\/\" target=\"_blank\" rel=\"noopener noreferrer\">Zillow Research<\/a>, <a href=\"https:\/\/www.huduser.gov\/portal\/datasets\/fmr.html\" target=\"_blank\" rel=\"noopener noreferrer\">HUD Fair Market Rents<\/a>, and <a href=\"https:\/\/www.census.gov\/programs-surveys\/acs\" target=\"_blank\" rel=\"noopener noreferrer\">US Census ACS<\/a>, here is the gross rent multiplier by city for the top 20 investment markets:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Flow_Markets_GRM_Under_10\"><\/span>Cash Flow Markets (GRM Under 10)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>City<\/th>\n<th>Median Price<\/th>\n<th>Monthly Rent (3BR)<\/th>\n<th>GRM<\/th>\n<th>Cash Flow Potential<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Cleveland, OH<\/strong><\/td>\n<td>$150,000<\/td>\n<td>$1,250<\/td>\n<td><strong>10.0<\/strong><\/td>\n<td>Strong<\/td>\n<\/tr>\n<tr>\n<td><strong>Memphis, TN<\/strong><\/td>\n<td>$155,000<\/td>\n<td>$1,200<\/td>\n<td><strong>10.8<\/strong><\/td>\n<td>Strong<\/td>\n<\/tr>\n<tr>\n<td><strong>Indianapolis, IN<\/strong><\/td>\n<td>$185,000<\/td>\n<td>$1,450<\/td>\n<td><strong>10.6<\/strong><\/td>\n<td>Strong<\/td>\n<\/tr>\n<tr>\n<td><strong>Augusta, GA<\/strong><\/td>\n<td>$165,000<\/td>\n<td>$1,300<\/td>\n<td><strong>10.6<\/strong><\/td>\n<td>Strong<\/td>\n<\/tr>\n<tr>\n<td><strong>Columbus, OH<\/strong><\/td>\n<td>$210,000<\/td>\n<td>$1,400<\/td>\n<td><strong>12.5<\/strong><\/td>\n<td>Moderate<\/td>\n<\/tr>\n<tr>\n<td><strong>Birmingham, AL<\/strong><\/td>\n<td>$145,000<\/td>\n<td>$1,150<\/td>\n<td><strong>10.5<\/strong><\/td>\n<td>Strong<\/td>\n<\/tr>\n<tr>\n<td><strong>Kansas City, MO<\/strong><\/td>\n<td>$200,000<\/td>\n<td>$1,350<\/td>\n<td><strong>12.3<\/strong><\/td>\n<td>Moderate<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>These markets have GRMs between 10 and 13 \u2014 meaning you pay 10\u201313 years of gross rent to own the property. At current 6.7% mortgage rates, these markets typically produce positive cash flow after all expenses. Cleveland and Memphis lead with the lowest gross rent multiplier by city among metros with populations over 300,000. Investors looking at the gross rent multiplier by city data consistently find that Midwest and Southeast markets dominate the top of the cash flow rankings because housing prices never spiked the way coastal and Sun Belt markets did in 2020\u20132022.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"900\" height=\"506\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/gross-rent-multiplier-by-city-2026.jpg\" alt=\"Gross rent multiplier by city 2026 \u2014 Cleveland 10.0 vs San Francisco 23.8 lower GRM means faster payback for rental investors\" class=\"wp-image-1030\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/gross-rent-multiplier-by-city-2026.jpg 1672w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/gross-rent-multiplier-by-city-2026-300x169.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/gross-rent-multiplier-by-city-2026-1024x576.jpg 1024w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/gross-rent-multiplier-by-city-2026-768x432.jpg 768w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/gross-rent-multiplier-by-city-2026-1536x864.jpg 1536w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Gross rent multiplier by city: lower GRM = faster payback<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Balanced_Markets_GRM_12%E2%80%9316\"><\/span>Balanced Markets (GRM 12\u201316)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>City<\/th>\n<th>Median Price<\/th>\n<th>Monthly Rent (3BR)<\/th>\n<th>GRM<\/th>\n<th>Cash Flow Potential<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Greensboro, NC<\/strong><\/td>\n<td>$220,000<\/td>\n<td>$1,350<\/td>\n<td><strong>13.6<\/strong><\/td>\n<td>Breakeven<\/td>\n<\/tr>\n<tr>\n<td><strong>Houston, TX<\/strong><\/td>\n<td>$250,000<\/td>\n<td>$1,600<\/td>\n<td><strong>13.0<\/strong><\/td>\n<td>Breakeven<\/td>\n<\/tr>\n<tr>\n<td><strong>Atlanta, GA<\/strong><\/td>\n<td>$320,000<\/td>\n<td>$1,800<\/td>\n<td><strong>14.8<\/strong><\/td>\n<td>Slightly negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Charlotte, NC<\/strong><\/td>\n<td>$350,000<\/td>\n<td>$1,800<\/td>\n<td><strong>16.2<\/strong><\/td>\n<td>Negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Dallas, TX<\/strong><\/td>\n<td>$340,000<\/td>\n<td>$1,900<\/td>\n<td><strong>14.9<\/strong><\/td>\n<td>Slightly negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Phoenix, AZ<\/strong><\/td>\n<td>$380,000<\/td>\n<td>$2,000<\/td>\n<td><strong>15.8<\/strong><\/td>\n<td>Negative<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>GRM 13\u201316 means breakeven to slightly negative cash flow at current rates. These markets rely on appreciation and equity buildup for returns. Investors in Houston and Greensboro can sometimes achieve positive cash flow with larger down payments (30\u201335%) or below-market purchases.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Appreciation_Markets_GRM_Above_16\"><\/span>Appreciation Markets (GRM Above 16)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>City<\/th>\n<th>Median Price<\/th>\n<th>Monthly Rent (3BR)<\/th>\n<th>GRM<\/th>\n<th>Cash Flow Potential<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Tampa, FL<\/strong><\/td>\n<td>$360,000<\/td>\n<td>$2,100<\/td>\n<td><strong>14.3<\/strong><\/td>\n<td>Negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Denver, CO<\/strong><\/td>\n<td>$530,000<\/td>\n<td>$2,400<\/td>\n<td><strong>18.4<\/strong><\/td>\n<td>Deeply negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Austin, TX<\/strong><\/td>\n<td>$420,000<\/td>\n<td>$2,400<\/td>\n<td><strong>14.6<\/strong><\/td>\n<td>Negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Raleigh, NC<\/strong><\/td>\n<td>$400,000<\/td>\n<td>$2,000<\/td>\n<td><strong>16.7<\/strong><\/td>\n<td>Negative<\/td>\n<\/tr>\n<tr>\n<td><strong>Nashville, TN<\/strong><\/td>\n<td>$420,000<\/td>\n<td>$2,200<\/td>\n<td><strong>15.9<\/strong><\/td>\n<td>Negative<\/td>\n<\/tr>\n<tr>\n<td><strong>San Diego, CA<\/strong><\/td>\n<td>$850,000<\/td>\n<td>$3,200<\/td>\n<td><strong>22.1<\/strong><\/td>\n<td>Deeply negative<\/td>\n<\/tr>\n<tr>\n<td><strong>San Francisco, CA<\/strong><\/td>\n<td>$1,200,000<\/td>\n<td>$4,200<\/td>\n<td><strong>23.8<\/strong><\/td>\n<td>Deeply negative<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>GRM above 16 means you are paying 16+ years of rent for the property. Cash flow is negative at any realistic financing. These are pure appreciation plays that require strong reserves and a long time horizon. San Francisco at 23.8 GRM means you need almost 24 years of gross rent to pay off the purchase price \u2014 before any expenses.<\/p>\n<p>Compare any of these markets in the <a href=\"\/cap-rate-calculator\">cap rate calculator<\/a> (cap rate accounts for expenses while GRM does not). For state-specific data: <a href=\"\/states\/ohio\/\">Ohio<\/a>, <a href=\"\/states\/georgia\/\">Georgia<\/a>, <a href=\"\/states\/north-carolina\/\">North Carolina<\/a>, <a href=\"\/states\/texas\/\">Texas<\/a>, <a href=\"\/states\/florida\/\">Florida<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Use_GRM_by_City_to_Compare_Markets\"><\/span>How to Use GRM by City to Compare Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The gross rent multiplier by city is a screening tool \u2014 not a final analysis. Here is how experienced investors use gross rent multiplier by city data:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Screen_Markets_by_GRM\"><\/span>Step 1: Screen Markets by GRM<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If your strategy is cash flow, filter for cities with GRM under 12. If appreciation, GRM 15\u201320 with strong job and population growth. Eliminate markets that do not match your strategy before spending time on individual deal analysis.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Compare_Within_a_GRM_Tier\"><\/span>Step 2: Compare Within a GRM Tier<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cleveland (GRM 10.0) and Memphis (GRM 10.8) are both cash flow markets, but they have different risk profiles. Cleveland has stronger job diversification (healthcare, finance, manufacturing). Memphis has higher crime and higher tenant turnover. Same GRM, different risk-adjusted returns. Always dig deeper than the gross rent multiplier by city headline number.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_Calculate_GRM_for_Your_Specific_Deal\"><\/span>Step 3: Calculate GRM for Your Specific Deal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>City-level GRM is a median \u2014 your deal may be better or worse. A $130K Cleveland property renting for $1,400\/month has a GRM of 7.7 \u2014 significantly better than the city median of 10.0. Use the <a href=\"\/gross-rent-multiplier-calculator\">GRM calculator<\/a> for your specific deal, then compare to the city median to see if you are getting above or below-average value.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_Run_Full_Analysis\"><\/span>Step 4: Run Full Analysis<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GRM ignores expenses \u2014 taxes, insurance, maintenance, vacancy, management. The gross rent multiplier by city tables above use gross rent only. A GRM of 10 in Cleveland with $175\/month insurance is very different from a GRM of 10 in a hypothetical Florida city with $375\/month insurance. After GRM screening, run every deal through the <a href=\"\/property-cash-flow-calculator\">cash flow calculator<\/a> with all real expenses. For the full picture including ROI, appreciation, and tax benefits, use the <a href=\"\/rental-property-roi-calculator\">ROI calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"GRM_vs_Cap_Rate_Which_to_Use_When_Comparing_Cities\"><\/span>GRM vs Cap Rate: Which to Use When Comparing Cities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Metric<\/th>\n<th>GRM<\/th>\n<th>Cap Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Formula<\/strong><\/td>\n<td>Price \u00f7 Annual Gross Rent<\/td>\n<td>NOI \u00f7 Price \u00d7 100<\/td>\n<\/tr>\n<tr>\n<td><strong>Includes expenses?<\/strong><\/td>\n<td>No \u2014 gross rent only<\/td>\n<td>Yes \u2014 after operating expenses<\/td>\n<\/tr>\n<tr>\n<td><strong>Best for<\/strong><\/td>\n<td>Quick screening, comparing markets<\/td>\n<td>Deeper analysis, comparing deals<\/td>\n<\/tr>\n<tr>\n<td><strong>Lower = better?<\/strong><\/td>\n<td>Yes (lower = more rent per dollar)<\/td>\n<td>Higher = better (more income per dollar)<\/td>\n<\/tr>\n<tr>\n<td><strong>Speed<\/strong><\/td>\n<td>2 numbers needed<\/td>\n<td>5+ numbers needed (expenses)<\/td>\n<\/tr>\n<tr>\n<td><strong>Limitation<\/strong><\/td>\n<td>Ignores expenses entirely<\/td>\n<td>Ignores financing, appreciation<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p><strong>Use GRM first<\/strong> to screen cities and eliminate markets that do not fit your strategy. <strong>Then use cap rate<\/strong> to compare specific deals within your chosen markets. For a deeper comparison, see our <a href=\"\/blog\/cap-rate-vs-grm\/\">cap rate vs GRM guide<\/a>. Calculate both in the <a href=\"\/cap-rate-calculator\">cap rate calculator<\/a> and <a href=\"\/gross-rent-multiplier-calculator\">GRM calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_GRM_Is_Changing_in_2026\"><\/span>Why GRM Is Changing in 2026<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The gross rent multiplier by city is shifting in 2026 due to three forces:<\/p>\n<ol>\n<li><strong>Rents are flattening while prices hold.<\/strong> National rent growth slowed to 1.2% annually, down from 15%+ in 2021\u20132022. But home prices are still rising 1.8% nationally. Result: GRMs are increasing (getting worse for investors) in most markets. Per <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">NAR data<\/a>, the median existing-home price reached $440,600 in June 2026.<\/li>\n<li><strong>Overbuilt Sun Belt markets are correcting.<\/strong> Austin rents dropped 5% YoY. Phoenix and Jacksonville are softening. GRMs in these markets are improving slightly as prices decline while rents stabilize.<\/li>\n<li><strong>Midwest resilience.<\/strong> Cleveland, Indianapolis, and Columbus continue to see steady rent growth (2\u20134%) with moderate price appreciation. Their GRMs remain the most favorable in the country for cash flow investors.<\/li>\n<\/ol>\n<p>The takeaway: if your gross rent multiplier by city analysis shows GRM rising in your target market (rent growth slower than price growth), cash flow is getting harder. Consider pivot to markets where GRM is stable or improving.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Mistakes_When_Using_GRM_to_Compare_Cities\"><\/span>5 Mistakes When Using GRM to Compare Cities<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Comparing_GRM_Across_Different_Property_Types\"><\/span>1. Comparing GRM Across Different Property Types<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A single-family GRM of 12 is not comparable to a multifamily GRM of 12. Multifamily properties have different expense ratios, management costs, and financing terms. Always compare same property type \u2014 SFR to SFR, duplex to duplex. Use the <a href=\"\/multifamily-property-calculator\">multifamily calculator<\/a> for apartment buildings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ignoring_Expense_Differences_Between_Cities\"><\/span>2. Ignoring Expense Differences Between Cities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cleveland has $175\/month insurance. Florida has $375\/month. Texas has $275\/month plus no income tax but high property taxes. Two cities with identical GRM of 11 can produce wildly different cash flows once you subtract actual expenses. GRM is a starting point, not a conclusion. See our <a href=\"\/blog\/rental-property-insurance-cost-by-state\/\">insurance cost by state guide<\/a> for the expense data that GRM hides.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Using_Asking_Rent_Instead_of_Actual_Rent\"><\/span>3. Using Asking Rent Instead of Actual Rent<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Zillow and Realtor.com show asking rents. Actual rents are often 3\u20138% lower after negotiation, concessions, and vacancy adjustments. Use actual achieved rents (from property managers, Rentometer &#8220;recently rented,&#8221; or HUD Fair Market Rents) for accurate GRM. Overestimating rent by 5% turns a GRM of 11 into 11.6 \u2014 potentially swinging a deal from positive to negative cash flow.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Not_Accounting_for_Vacancy\"><\/span>4. Not Accounting for Vacancy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>GRM uses gross annual rent at 100% occupancy. No property is occupied 100% of the time. Cleveland has 5% vacancy. Austin has 9%. That 4% difference means $576\/year less income on a $1,200\/month rental in Austin \u2014 enough to change your GRM analysis. Factor vacancy into your cash flow analysis using the <a href=\"\/vacancy-rate-calculator\">vacancy rate calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Chasing_the_Lowest_GRM_Without_Risk_Analysis\"><\/span>5. Chasing the Lowest GRM Without Risk Analysis<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The lowest GRM cities often have higher tenant turnover, property crime, and management challenges. A GRM of 7 in a high-crime neighborhood produces great numbers on paper but may result in $3,000 eviction costs, $2,000 in damage repairs, and 3 months vacancy every 2 years. Always visit the neighborhood. Always talk to local property managers. Numbers alone do not capture risk.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"What_is_a_good_gross_rent_multiplier_for_investment_property\"><\/span>What is a good gross rent multiplier for investment property?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">A GRM under 12 is generally good for cash flow investors at current 2026 mortgage rates. GRM 8\u201310 is excellent \u2014 these are typically found in Midwest and Southeast markets like Cleveland (10.0), Memphis (10.8), and Indianapolis (10.6). GRM 12\u201315 is neutral \u2014 breakeven to slightly negative cash flow. GRM above 15 indicates an appreciation market where rents do not cover expenses. The &#8220;right&#8221; GRM depends on your strategy \u2014 cash flow investors want low GRM, appreciation investors accept high GRM with strong growth fundamentals. Calculate your deal in the <a href=\"\/gross-rent-multiplier-calculator\">GRM calculator<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Which_US_cities_have_the_lowest_gross_rent_multiplier_in_2026\"><\/span>Which US cities have the lowest gross rent multiplier in 2026?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">The cities with the lowest GRM in 2026 among major metros are Cleveland OH (10.0), Birmingham AL (10.5), Indianapolis IN (10.6), Augusta GA (10.6), and Memphis TN (10.8). These markets have the best rent-to-price ratios in the country, producing positive cash flow at current mortgage rates. Midwest and Southeast cities dominate the low-GRM category due to affordable home prices combined with stable rental demand. Compare these markets in the <a href=\"\/cap-rate-calculator\">cap rate calculator<\/a> for a deeper analysis that includes operating expenses.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"How_do_I_find_the_gross_rent_multiplier_for_my_zip_code\"><\/span>How do I find the gross rent multiplier for my zip code?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">To calculate GRM for your specific zip code: find the median home price (Zillow, Redfin, or county assessor data) and median monthly rent (Zillow Rentals, Rentometer, or HUD Fair Market Rents at huduser.gov). Divide price by annual rent (monthly \u00d7 12). Example: if median price in your zip is $180,000 and median rent is $1,400\/month, GRM = $180,000 \u00f7 ($1,400 \u00d7 12) = 10.7. Compare this to the city-level GRM to see if your zip code is better or worse than the metro average. Use the <a href=\"\/gross-rent-multiplier-calculator\">GRM calculator<\/a> for instant computation.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Is_GRM_or_cap_rate_better_for_comparing_rental_markets\"><\/span>Is GRM or cap rate better for comparing rental markets?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Use GRM for quick market screening (only needs price and rent) and cap rate for deeper analysis (needs price, rent, AND all operating expenses). GRM is faster but less accurate because it ignores taxes, insurance, maintenance, and vacancy \u2014 expenses that vary significantly between cities. A market with GRM 10 and high insurance costs may produce worse cash flow than a market with GRM 12 and low insurance. Start with GRM to narrow your market list, then switch to cap rate for deal-level comparison. See <a href=\"\/blog\/cap-rate-vs-grm\/\">cap rate vs GRM comparison<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Why_is_gross_rent_multiplier_increasing_in_most_cities\"><\/span>Why is gross rent multiplier increasing in most cities?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">GRM is increasing (worsening for investors) because home prices are rising faster than rents in most US cities. National rent growth slowed to 1.2% annually in 2026, while home prices are up 1.8%. When the numerator (price) grows faster than the denominator (rent), GRM increases. This is especially acute in Sun Belt markets like Austin, Phoenix, and Jacksonville where new apartment supply is putting downward pressure on rents while home prices remain elevated. Midwest markets (Cleveland, Indianapolis) have more stable GRMs because price and rent growth are more balanced.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/gross-rent-multiplier-calculator\"><strong>GRM Calculator<\/strong><\/a> \u2014 Calculate gross rent multiplier for any deal<\/li>\n<li><a href=\"\/cap-rate-calculator\"><strong>Cap Rate Calculator<\/strong><\/a> \u2014 Property return rate (includes expenses)<\/li>\n<li><a href=\"\/property-cash-flow-calculator\"><strong>Cash Flow Calculator<\/strong><\/a> \u2014 Monthly cash flow analysis<\/li>\n<li><a href=\"\/rental-property-calculator\"><strong>Rental Property Calculator<\/strong><\/a> \u2014 Full investment analysis<\/li>\n<li><a href=\"\/rental-property-roi-calculator\"><strong>ROI Calculator<\/strong><\/a> \u2014 Total return over hold period<\/li>\n<li><a href=\"\/vacancy-rate-calculator\"><strong>Vacancy Rate Calculator<\/strong><\/a> \u2014 Market vacancy analysis<\/li>\n<li><a href=\"\/multifamily-property-calculator\"><strong>Multifamily Calculator<\/strong><\/a> \u2014 Apartment building analysis<\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<p>Blog guides:<\/p>\n<ul>\n<li><a href=\"\/blog\/gross-rent-multiplier-guide\/\">Gross Rent Multiplier Explained<\/a><\/li>\n<li><a href=\"\/blog\/gross-rent-multiplier-calculator-guide\/\">GRM Calculator Guide<\/a><\/li>\n<li><a href=\"\/blog\/cap-rate-vs-grm\/\">Cap Rate vs GRM<\/a><\/li>\n<li><a href=\"\/blog\/cap-rate-by-state-best-markets-2026\/\">Cap Rate by State<\/a><\/li>\n<li><a href=\"\/blog\/good-cap-rate-rental-property\/\">Good Cap Rate for Rentals<\/a><\/li>\n<li><a href=\"\/blog\/how-much-can-i-rent-my-house-for\/\">How Much Can I Rent My House For<\/a><\/li>\n<li><a href=\"\/blog\/rental-property-insurance-cost-by-state\/\">Insurance Cost by State<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The gross rent multiplier by city ranges from 6.5 in Cleveland to 22+ in San Francisco \u2014 and that single number tells you more about a market&#8217;s investment potential than&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1030,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1029","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=1029"}],"version-history":[{"count":1,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1029\/revisions"}],"predecessor-version":[{"id":1031,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/1029\/revisions\/1031"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/1030"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=1029"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=1029"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=1029"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}