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What Is Effective Gross Income (EGI)?

Jarom Pratt
Co-Founder & Principal, EagleCap InvestingJune 20, 2026
Answer

Effective gross income is the rental income a property actually collects after vacancy, concessions, and bad debt, plus other income like fees and parking. It is the top line that, minus operating expenses, produces net operating income.

EGI is more realistic than gross potential rent because it reflects what is collected, not what is theoretically possible at 100% occupancy and market rents. It is the starting point for calculating NOI.

Related Terms
Net Operating Income (NOI)Occupancy RateLoss to Lease

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