How Beneficial is the Gross Income Multiplier?

The gross income multiplier (GIM) is a fast and easy way to estimate the value of an income producing property.

Using the gross income multiplier, you can compare annual rental income to a property’s fair market value.

Real estate investors use the gross income multiplier for several reasons. First, the information to calculate the GIM is easily available.

What Can the Gross Income Multiplier Do for Me?

Find the Gross Annual Rental Income

To figure this out, you multiply the number of square feet by the rental rate per square foot. If the property is vacated, you must know the projected rent.

In order to compare other properties, it may take a little more effort to track down the property price.

Determine the  Property Price

Once you’ve determined the gross annual rental income and the property price, you are ready to calculate the GIM. The formula for the gross income multiplier is simple.

If you don’t want to have to pay to file taxes but want to do them on your computer, you can use fillable forms on the IRS website. The forms have instructions to help you fill out the forms correctly.

Using the Formula to Calculate Property Value

Get the Most Out of Your Property Portfolio


Now that you know more about the benefits of the gross income multiplier, you have a great way to make first glance assessments of potential rental properties.

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