Real Estate Math

An Iowa property generates annual gross rents of $48,000. A vacancy and collection loss of 5% is deducted. Operating expenses are $22,000. What is the NOI?

A$22,600
B$23,600✓ Correct
C$24,000
D$24,400

Explanation

Effective gross income = $48,000 × (1 − 0.05) = $48,000 × 0.95 = $45,600. NOI = $45,600 − $22,000 = $23,600.

Related Iowa Real Estate Math Questions

Practice More Iowa Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Iowa Quiz →