NOI Guides

What Is Net Operating Income (NOI)? The Number Behind Every Rental Valuation

Net operating income is rent minus vacancy and operating expenses, before the mortgage. What NOI includes, what it leaves out, a worked example, and why it sets price.

NOI Formula: How to Calculate Net Operating Income Step by Step

The NOI formula, line by line: gross scheduled income, vacancy, effective gross income, each operating expense and what stays out. Three worked examples and the errors that inflate NOI.

What Counts as an Operating Expense in NOI (and What Does Not)

Operating expenses in NOI: the full list of what to include, from taxes and insurance to reserves and management, what to leave out, and how each line moves value.

Operating Expense Ratio: What a Good Expense Ratio Looks Like for a Rental

Operating expense ratio benchmarks for rental property: how to calculate it, what lean, typical and heavy ratios look like, what drives them, and why a low ratio on a listing is a warning.

NOI vs Cash Flow: Why the Property's Income and Your Income Are Different Numbers

NOI vs cash flow explained: NOI is what the property earns before debt, cash flow is what you keep after the mortgage. A worked example with a loan, and where DSCR and cash on cash fit.

NOI and Cap Rate: How Net Operating Income Sets a Property's Value

NOI and cap rate together set what a rental is worth: value equals NOI divided by cap rate. See $18,270 of NOI priced at 4% to 10%, and why each $1,000 of NOI is worth $15,385.

How to Increase NOI: 12 Ways to Raise Net Operating Income on a Rental

How to increase NOI on a rental property: 12 ways to raise income or cut operating expenses, with the dollar value of each at a 6.5% cap rate, and the two moves that only look like they help.