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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