The gross rent multiplier (GRM) provides a fast way to screen potential investments by dividing the property's purchase price by its annual gross rental income. A property listed at $200,000 generating $24,000 per year in gross rent has a GRM of 8.3. Lower GRMs generally indicate better cash flow potential, while higher GRMs suggest the property is priced at a premium relative to its income. GRM is useful for initial screening but should never be the sole basis for an investment decision, as it ignores operating expenses, vacancy, and financing costs entirely.