The hypothetical amount of revenue if the apartment community was 100% leased year-round at market rates plus all other income. For example, a 200-unit apartment community with a GPR of $170,420 and monthly other income of $14,153 from late fees, pet fees and a RUBS program has a gross potential income of $184,573 per month.
Gross Potential Rent (GPR) is the hypothetical amount of revenue if the apartment community was 100% leased year-round at market rental rates. For example, here is how the GPR is calculated for a 200-unit apartment building:
Gross Rent Multiplier (GRM) is the number of years the apartment would take to pay for itself based on the gross potential rent (GPR). The GRM is calculated by dividing the purchase price by the annual GPR. For example, a 200-unit apartment community purchased for $12,200,000 with a GPR of $170,420 per month has a GRM of 5.97.« Back to Glossary Index