NOI (Net Operating Income)
A property's annual rental income minus operating expenses (taxes, insurance, maintenance, vacancy, management) but before mortgage payments. NOI is the numerator in cap rate; gross rent is the numerator in DSCR.
Why it matters on a DSCR loan
NOI is the number you use to evaluate whether a deal is worth buying, while DSCR is the number the lender uses to decide whether to fund it — confusing the two is a common analysis mistake since DSCR uses gross rent, not NOI. A property can show a passing DSCR yet have thin NOI once vacancy, management, and maintenance are subtracted, so run both calculations before committing earnest money. Underwriters don't ask for your NOI on a DSCR file, but your own hold model should live and die by it.
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).