Estimate gross rental income, effective income after vacancy, and net operating income (NOI) for any rental property.
Net Operating Income (annual)
$18,105
$1,509 per month
Gross Income
$27,300 / yr
$2,275 per month
Vacancy Loss
− $1,911
7% allowance
Effective Gross Income
$25,389 / yr
$2,116 per month
Operating Expenses
− $7,284 / yr
Taxes, insurance, maintenance, mgmt, HOA
Base rent × 12, plus other lease income (pet rent, parking, storage, late fees). Assumes 100% occupancy.
An allowance (typically 5%–8%) for unrented months and unpaid rent. Subtracted from gross to give effective income.
Gross income minus vacancy. This is the realistic top line for performance and lender underwriting.
Property tax, insurance, HOA, maintenance, and management. Excludes mortgage and capital improvements.
Effective gross income − operating expenses. The property's earning power before financing — used in cap rate and DSCR.
All rental income is taxable and goes on Schedule E. Operating expenses, mortgage interest, and depreciation are deductible.
Rental income is all money received from tenants — base rent, late fees, pet rent, parking, and any other lease-related charges. For tax purposes, it's reported on IRS Schedule E.
Gross rental income is the full rent if the property were 100% occupied year-round. Effective gross income subtracts a vacancy and credit-loss allowance (commonly 5%–8%) to reflect realistic collections.
NOI = Effective gross income − operating expenses (taxes, insurance, maintenance, management, HOA). NOI excludes the mortgage and capital expenditures — it measures the property's earning power before financing.
5%–8% is a safe baseline for stabilized US rentals. Strong markets with long average tenancies can use 3%–5%; turnover-heavy markets or student rentals often need 10%+.
Yes. Rental income is taxable and reported on Schedule E of your federal return. You can deduct operating expenses, mortgage interest, property tax, insurance, repairs, and depreciation against that income.
Enter rent, vacancy, and operating expenses to estimate rental income and NOI. For ongoing tracking of rental income across multiple properties, Havyn plans start at $19/mo.
