What is a good NOI percentage?

A good NOI percentage, meaning NOI as a share of collected income, is 55 to 70% for most single-family and small multifamily rentals with every expense counted. That is the same as an expense ratio of 30 to 45%. Above 70% usually means management or reserves were left out. Below 55% means high taxes, owner-paid utilities or an old building.

The default property on this site keeps 64.1% of collected income as NOI, an expense ratio of 35.9%. Houses in low-tax states with tenants paying all utilities can reach 70%. Older apartment buildings where the owner pays heat and water often sit near 50%.

The percentage tells you whether the expense list is honest. It does not tell you whether the property is a good buy. For that, divide NOI by price to get the cap rate and compare it to what similar properties sell for in the same market.