CalculateRealEstateROI

Cash Flow

What percentage of rent should operating expenses be?

35–50% of EGI for stabilized SFR/small MF; 40–55% for larger multifamily.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

35–50% of EGI for stabilized SFR/small MF; 40–55% for larger multifamily.

Expanded explanation

Includes: taxes, insurance, PM, repairs, capex reserves, vacancy, utilities. Class A apartments lower; Class C SFR higher. The 50% rule is a useful shortcut for screening.

Examples

  • $24k EGI × 45% = $10,800 OpEx → $13,200 NOI.

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