Gross Operating Income (GOI) is your property’s estimated income after accounting for vacancy. It starts with your Gross Scheduled Income (GSI)—what you’d earn if your property was 100% rented all year—and subtracts projected vacancy losses. The result is a more realistic view of your expected rental income before expenses.
Why does this matter? GOI is a crucial figure in every investor’s financial toolkit. It’s the foundation for calculating Net Operating Income (NOI), cash flow, and return metrics. For example, if your GSI is $24,000 and you expect 5% vacancy, your GOI would be $22,800. That’s the income you’re likely to receive, not just what looks good on paper.
At Meridian, we use GOI in every property’s pro forma to give investors a clear, conservative starting point for evaluating deals—especially important in 1031 exchanges where decisions are time-sensitive.
