Quickly screen Canadian rental properties using the gross rent multiplier (GRM) metric.
The Gross Rent Multiplier (GRM) is a quick property screening metric that divides the property's purchase price by its annual gross rental income. It tells you how many years of gross rent it would take to pay for the property — a simple way to compare properties without needing detailed expense data.
| GRM | Interpretation | Typical Canadian Market |
|---|---|---|
| Under 10x | Excellent yield | Small towns, distressed properties |
| 10–14x | Good yield | Edmonton, Winnipeg, Moncton |
| 14–18x | Moderate — typical investment market | Calgary, Ottawa, Hamilton |
| 18–22x | High — appreciation-driven | Montreal, Halifax |
| 22–30x+ | Very high — primarily appreciation play | Toronto, Vancouver |
| City | Avg. Home Price (2BR) | Avg. 2BR Rent/yr | Approx. GRM |
|---|---|---|---|
| Vancouver | $900,000 | $38,400 | 23x |
| Toronto | $750,000 | $33,600 | 22x |
| Ottawa | $580,000 | $27,600 | 21x |
| Calgary | $480,000 | $26,400 | 18x |
| Edmonton | $340,000 | $22,800 | 15x |
| Winnipeg | $290,000 | $20,400 | 14x |
| Metric | Uses Expenses? | Financing? | Best For |
|---|---|---|---|
| GRM | No — gross rent only | Excluded | Quick screening |
| Cap Rate | Yes — NOI after expenses | Excluded | Detailed comparison |
| Cash-on-Cash | Yes — after all costs | Included | Actual return on cash |
If you know the local market GRM, you can work backwards to estimate what a property should be worth based on its rent:
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Get KOHO Free — Use Code 45ET55JSYAThe gross rent multiplier is a fast, simple tool for comparing Canadian rental properties. A lower GRM means more rental income relative to price — generally better for cash flow investors. A higher GRM is common in appreciation markets like Toronto and Vancouver where investors accept lower yields for anticipated price growth. Use GRM to screen deals quickly, then validate with cap rate and detailed cash flow analysis before buying.