Operating Expense Ratio Rechner — Formel

Operating Expense Ratio

The OER shows what percentage of a property's gross income is spent on operating costs. A lower OER indicates more efficient property management.

Formula

OER = Operating Expenses / Effective Gross Income x 100

Benchmarks

  • Single-family rentals: 35-45%
  • Small multifamily: 40-50%
  • Large apartment complexes: 45-55%
  • Commercial office: 40-50%

    • Lösungsbeispiel

    A property has $22,000 in operating expenses on $55,000 effective gross income.

    1. OER = $22,000 / $55,000 x 100 = 40.0%
    2. NOI = $55,000 - $22,000 = $33,000
    3. NOI ratio = $33,000 / $55,000 x 100 = 60.0%
    4. A 40% OER means 40 cents of every income dollar goes to expenses