ROI Metrics

Operating Expense Ratio

Operating expenses as a percentage of gross income.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

The inverse of NOI margin — how much of rent gets eaten by costs.

Examples

40% expense ratio is healthy for SFR; 45-55% normal for small multifamily.

Common mistakes

Forgetting capex reserves, which sit outside operating expenses.

Operating Expense Ratio

Plain-English explanation

Examples

Common mistakes

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