Property income minus operating expenses, before debt service, income taxes, depreciation, and capital expenditures.
What net operating income means in practice
NOI is a common way to measure the operation of an income property independent of its financing. Consistent categorization matters because moving an item into or out of operating expenses changes the result.
Example
A property with $48,000 in effective income and $18,000 in operating expenses produces $30,000 in NOI.
This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.