Real Estate Math

A 200-unit apartment complex has an average monthly rent of $875/unit, a 6% vacancy rate, and annual operating expenses of $1,082,000. What is the annual NOI?

A$892,000✓ Correct
B$976,000
C$850,000
D$910,000

Explanation

PGI = 200 × $875 × 12 = $2,100,000. Vacancy = $2,100,000 × 6% = $126,000.

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