The GRM formula
GRM = purchase price / gross annual rent. Gross rent is scheduled rent before vacancy and expenses. Flip it around and you get a quick value check: value is about gross rent times a market GRM.
| Units | 8 |
| Rent per unit, monthly | $1,000 |
| Gross annual rent | $96,000 |
| Georgia 5+ unit median asking GRM | 10.9 |
| Rough value at the median GRM | $1,046,400 |
| Price per door | $130,800 |
That is a screen, not a price. The GRM and price per unit calculator runs the same math with a cap rate sensitivity next to it.
Asking GRM by segment
Medians of active listings with enough rent data to screen. A median needs at least 10 listings and a middle-half range needs 12. Rows below that show the count only.
| Segment | Listings (n) | Median GRM | Middle half | Median cap | Median $/door |
|---|---|---|---|---|---|
| Georgia apartment buildings (5+ units) | 16 | 10.9 | 9.3 to 12.4 | 5.27% | $155,000 |
| Georgia 2 to 4 units | 129 | 10.8 | 9.5 to 12.5 | 5.40% | $190,000 |
| Georgia, all 2+ units | 145 | 10.8 | 9.5 to 12.5 | 5.40% | $188,000 |
| Core Metro Atlanta (13 counties) | 105 | 11.1 | 9.8 to 12.5 | 5.32% | $200,000 |
| Georgia outside Core Metro | 40 | 10.3 | 8.9 to 12.1 | 5.88% | $149,000 |
| City of Atlanta, all 2+ units | 50 | 11.0 | 9.0 to 12.7 | 5.28% | $217,000 |
| City of Atlanta, 2 to 4 units | 45 | 11.1 | 9.2 to 12.9 | 5.39% | $225,000 |
| City of Atlanta, 5+ units | 5 | Not enough listings for a median | |||
| Core Metro Atlanta, 5+ units | 8 | Not enough listings for a median | |||
| Outside Core Metro, 5+ units | 8 | Not enough listings for a median | |||
By county
| County | Listings (n) | Median GRM | Median cap |
|---|---|---|---|
| Fulton County | 48 | 10.6 | 5.88% |
| DeKalb County | 19 | 12.2 | 5.03% |
| Gwinnett County | 11 | 12.3 | 4.81% |
| Cobb County | 10 | 11.7 | 5.25% |
Below the 10-listing gate, so no median: Clayton County (n=6), Henry County (n=1), Cherokee County (n=4), Bibb County (n=6), Muscogee County (n=2), Clarke County (n=2).
Where GRM misleads
GRM treats every dollar of rent the same. Two $1,000,000 buildings with $100,000 of gross rent both have a GRM of 10. If one runs a 35% expense ratio and the other 50% (owner-paid water, a big tax bill, an old roof), NOI is $61,750 versus $47,500, a 6.2% cap versus 4.8%. Same GRM, very different buildings.
- Who pays utilities. Master-metered water and owner-paid electric are common on older Georgia buildings.
- Property tax after the sale. Georgia often reassesses after a sale. See NOI for apartment buildings.
- Pro forma rent. A GRM on "market rent" is the seller's GRM, not yours. Use the rent roll.
- Condition. A low GRM with deferred maintenance is not cheap once you price the roof.
Once a building passes the GRM screen, move to apartment cap rates in Georgia and the cap rate calculator. Listings with a GRM of about 8.3 or lower also meet the 1% rule.
Screen live asks with it: apartment buildings for sale in Atlanta, apartment buildings for sale in Georgia, or every size on multifamily investment properties in Georgia. GRM works poorly on buildings with long commercial leases or special uses, so price commercial properties for sale in Georgia and churches for sale in Georgia on NOI and cap rate instead. Vacant land for sale in Georgia has no rent to multiply, and commercial space for lease in Georgia shows what a tenant would pay. If a GRM looks too good, send me the listing and I will pull the rent roll.
How to screen a listing with GRM, step by step
- Annualize the in-place rent. Add up current monthly rents from the rent roll and multiply by 12. Use in-place rent, not pro forma or market rent.
- Divide price by gross rent. GRM = asking price / gross annual rent. Run it at the ask and at your target price.
- Compare to the right segment. Compare to the Georgia median for the same size and area on this page, and to recent sales your broker can pull.
- Check who pays what. Owner-paid water, trash or utilities and high property tax can make a low GRM a bad deal. Note anything unusual.
- Confirm with NOI and cap rate. For the listings that pass, rebuild NOI and compute the cap rate before you make an offer.
How these numbers are built
Source: active FMLS Residential Income listings in Georgia on the jeffcrowecre.com feed, snapshot dated 2026-10-26. GRM is the asking price divided by gross potential annual rent from the listing (unit rent roll, MLS gross income, or a building-total rent row). 145 of 263 active listings had usable rent data. Spot-checked before publish: NOI equals effective gross income minus expenses on every included listing (0 mismatches). Aggregates only. Listing data is from the listing brokers via FMLS and is not verified.