Definition
Effective gross income minus operating expenses, excluding debt service, depreciation, and capital expenditures.
Example
NOI of $128,000 divided by a 6.25% market cap rate implied a value near $2,048,000.
Related terms
Frequently asked questions
What does Net Operating Income mean in real estate?
Effective gross income minus operating expenses, excluding debt service, depreciation, and capital expenditures.
How is Net Operating Income used in practice?
NOI of $128,000 divided by a 6.25% market cap rate implied a value near $2,048,000.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.