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Unit Mix Income Calculator

Build the income side of a multifamily underwrite from unit mix. Studios, 1-BR, 2-BR, and 3-BR roll into gross scheduled rent, then effective gross income after vacancy, then NOI after OpEx, then valuation at your cap rate.

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OpEx / EGI for valuation

%

Monthly gross scheduled rent

$47,000

Annual gross scheduled rent

$564,000

Effective gross income

$535,800

Net operating income

$310,764

Valuation at cap rate

$5,179,400

Total units

26

Avg rent per unit

$1,808

Dominant unit type

46% 1-BR

How the math works

Unit mix drives both gross income and how the property prices. Buyers want diversified mix (studios + 1-BR + 2-BR) for liquidity — single-mix properties (all studios or all 3-BR) get cap-rate haircuts of 25-100 basis points. Class-A urban favors 1-BR heavy, suburban workforce favors 2-BR heavy, college towns favor 3-4 BR shared.

EGI = GSR × (1 − vacancy − collection loss − concessions). NOI = EGI − OpEx. Valuation = NOI ÷ cap rate. The cap rate you apply should reflect both market and unit mix. Always sanity- check valuation per door and per square foot against recent sales of similar mix.

How to Use

  1. Enter unit count and rent for each bedroom type.
  2. Set economic vacancy (physical vacancy + collection loss + concessions).
  3. Enter operating expense ratio for the property class.
  4. Enter the market cap rate for valuation.
  5. Read GSR, EGI, NOI, valuation, and dominant unit type signal.

Frequently Asked Questions

What's a healthy unit mix?

Diversified — typically 10-25% studios, 35-50% 1-BR, 25-40% 2-BR, and 5-15% 3-BR for urban infill. Suburban garden-style skews 1-BR/2-BR heavy. Single-mix assets (all 1-BR or all studios) trade at 25-100 bps wider cap rates due to demand concentration risk.

What does GSR vs EGI vs NOI mean?

GSR (gross scheduled rent) is 100%-occupied face rent. EGI (effective gross income) deducts vacancy, collection loss, and concessions. NOI (net operating income) deducts operating expenses but not debt service or capex. Valuation = NOI ÷ cap rate.

What operating expense ratio should I use?

Class-A urban: 30-40%. Class-B garden: 38-48%. Class-C value-add: 45-55%. The ratio is OpEx ÷ EGI, not OpEx ÷ GSR. Tax-heavy markets (TX, IL) skew higher; low-tax markets (NV, FL parts) lower. Always sanity-check against trailing 12-month T12 of comparable buildings.

How do I price each unit?

Pull comp set rents for each bed/bath count within 1 mile listed in the last 60 days, adjust for amenities and condition. Asking minus typical concessions is the effective comp rent. Don't average across the building — each unit type comps on its own.

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