Net Operating Income ("NOI")
Revenue - Operating Expenses
Net Operating Income is used to calculate capitalization rate ("cap rate"), a fundamental quantitative valuation metric for real estate investing.
Depending on the type of real estate, revenue can include:
- Rental revenue
 - Service fees
 - Parking revenue
 - Vending machine revenue
 
Operating expenses include:
- property management
 - vacancy
 - uncollectible rent revenue
 - insurance
 - property taxes
 - maintenance
 

Sell your home on your terms
Instant Offer
Get an instant offer for your home from OfferMarket
Name
Phone
Marketplace
Create a no cost, no obligation listing on OfferMarket
Phone