IAAO 102 FORMULAS QUESTIONS
AND ANSWERS
Potential Gross Income (PGI) - ans-Units x months x rent$=
sw sw sw sw sw sw sw sw sw
Net Operating Income (NOI) - ans-Effective Gross Income - Operating Expenses =
sw sw sw sw sw sw sw sw sw sw sw
Effective Gross Income (EGI) - ans-Potential gross income -
sw sw sw sw sw sw sw sw
Vacancy&Collection Loss @ x%
sw sw sw sw
Operating Expense Ratio (OER) - ans-Operating expenses / effective gross income =
sw sw sw sw sw sw sw sw sw sw sw
Net Income Ratio (NIR) - ans-Operating expense ratio or net operating income /
sw sw sw sw sw sw sw sw sw sw sw sw
effective gross income =
sw sw sw sw
Effective Gross Income Multiplier (EGIM) - ans-Sale price / effective gross income
sw sw sw sw sw sw sw sw sw sw sw
Overall capitalization rate - ans-Net income ratio / gross income multiplier =
sw sw sw sw sw sw sw sw sw sw sw
AND ANSWERS
Potential Gross Income (PGI) - ans-Units x months x rent$=
sw sw sw sw sw sw sw sw sw
Net Operating Income (NOI) - ans-Effective Gross Income - Operating Expenses =
sw sw sw sw sw sw sw sw sw sw sw
Effective Gross Income (EGI) - ans-Potential gross income -
sw sw sw sw sw sw sw sw
Vacancy&Collection Loss @ x%
sw sw sw sw
Operating Expense Ratio (OER) - ans-Operating expenses / effective gross income =
sw sw sw sw sw sw sw sw sw sw sw
Net Income Ratio (NIR) - ans-Operating expense ratio or net operating income /
sw sw sw sw sw sw sw sw sw sw sw sw
effective gross income =
sw sw sw sw
Effective Gross Income Multiplier (EGIM) - ans-Sale price / effective gross income
sw sw sw sw sw sw sw sw sw sw sw
Overall capitalization rate - ans-Net income ratio / gross income multiplier =
sw sw sw sw sw sw sw sw sw sw sw
