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Gross Income Multiplier Calculator

GIM = purchase price ÷ gross annual income. Unlike cap rate, it ignores operating expenses — fine for quick screening of similar properties in the same market. Useful for broker comp analysis on small multifamily.

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Gross income multiplier

8.85

Market-tier interpretation

Workforce / class C typical

How the math works

$850K ÷ $96K = 8.85 GIM — class B/workforce tier. Quick screen: acceptable for a cash-flow focused rental in a decent neighborhood. Not a complete analysis.

Follow up with cap rate using actual NOI, not gross income. GIM can make two properties look the same when one has $4K/mo opex and the other has $7K — massive NOI gap hidden.

How to Use

  1. Enter purchase price and gross annual income.
  2. See GIM and a market-tier benchmark.

Frequently Asked Questions

GIM vs cap rate?

GIM is gross (ignores opex). Cap rate uses NOI (after opex). GIM is faster but less honest. Use GIM for quick same-market screening; use cap rate for investment decisions.

What's a good GIM?

Class A urban multifamily: 12-18. Class B suburban: 8-12. Class C / small multifamily: 6-9. Single-family rentals: 8-14. Below 6 usually signals a high-risk property or local distress; above 18 means you're relying on appreciation, not cash flow.

Is GIM outdated?

Older metric but still used in commercial brokerage. Don't rely on it as the only screen — two buildings with identical GIM can have wildly different NOI if one has utility-inclusive rents and the other doesn't.

Scheduled vs actual income?

GIM uses scheduled (gross potential) income in most formulas. For real underwriting, use effective gross income (after vacancy and concessions). Make sure you're comparing like-for-like when using GIM for comps.

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