Operating Expense Ratio

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The Operating Expense Ratio (OER) is the is the ratio of operating expenses to the effective gross income.

 

Example:

 

If an income property has an annual effective gross income of $64,000 with operating expenses of $30,000, what is the operating expense ratio?

 

$30,000 / $64,000 = 0.4687 rounded to 0.47.

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