Potential Gross Income

Potential Gross Income (PGI) is the maximum possible rent at market rent that can be expected for a given period of time at full occupancy without losses due to collections and without consideration of expenses.  The period of time that income is estimated is usually a year.

 

For example:  Rent for 2-bedroom apartments is typically $750 per month.  An apartment building with 20 2-bedroom units has potential (monthly) gross income of $15,000.  There is no consideration of vacancies, collection losses, or other expenses.

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