Common AcronymsHomebuying Glossary
NOI
Also known as Net Operating Income
A rental property's total income minus operating expenses, before financing costs.
In plain English
NOI is a property's rental income minus operating expenses (maintenance, taxes, insurance, management), but before subtracting mortgage payments, used as the basis for calculating cap rate and DSCR.
Why it matters
NOI is the standard starting point for evaluating whether a rental property is a sound investment, independent of how it's financed.
Related terms
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