Net Operating Income (NOI) is what a property actually earns before financing enters the picture — gross rent, minus the operating expenses of running the building (taxes, insurance, maintenance, management), before any mortgage payment comes out. It's the number a lender underwrites against, not the sticker price of the lease.
How we get to it from a bare listing
Most listings don't hand us a full income statement. What we usually have is a stated (or estimated) cap rate and an asking price — so we work backward:
A $3M listing at an 8.5% cap rate implies roughly $255,000 in annual NOI. That's the figure we carry forward into the DSCR math.
Why we don't publish a raw NOI number on deal pages
If the cap rate feeding that calculation is a tenant-benchmark estimate rather than broker-stated, the NOI derived from it inherits the same uncertainty — publishing it to two decimal places would imply more precision than we actually have. Instead, the free tier shows rounded cap rate and rounded DSCR figures, which carry the same information without overstating exactness.
Where NOI shows up next
NOI is the input to DSCR, as-stated and stressed — the core number behind every grade on this site.