# NOI (net operating income)

> NOI is rental income minus operating costs, before financing and tax. The costs Punta Cana buyers most often leave out of it.

Source: https://canakeys.com/glossary/noi
Publisher: Cana Keys (A&M Caribbean Group SRL), Punta Cana, Dominican Republic
Last reviewed: 2026-08-27
Language: en
Licence: quote and cite with attribution and a link.

Net operating income is gross rental income minus the costs of operating the property: management, HOA, utilities paid by the owner, insurance, IPI, maintenance and a realistic vacancy allowance. It excludes mortgage payments, income tax and capital expenditure such as replacing furniture. NOI is the honest cashflow line for comparing two properties.

## Why a Punta Cana buyer should care
Punta Cana operating costs are heavier than most buyers assume: dollar HOA fees, management taking a share of gross, salt-air wear on furniture and appliances, and demand concentrated in high season. Building NOI forces every one of those into the spreadsheet, which is exactly why brochures quote gross instead.

## Common mix-up
Furniture replacement is treated as a one-off. In short-term rental it is a recurring reserve. Leaving it out overstates NOI year after year and makes a mediocre unit look like a good one.

## FAQ

### Does NOI include the mortgage?
Answer: No. Financing sits below NOI. Two buyers with different loans should still compute the same NOI for the same unit.
Permalink: https://canakeys.com/glossary/noi#does-noi-include-the-mortgage

### What vacancy should I assume?
Answer: Use realised data from comparable units in the same building rather than a market average — occupancy varies sharply by tower and manager.
Permalink: https://canakeys.com/glossary/noi#what-vacancy-should-i-assume

## Related

- [Net yield](https://canakeys.com/yield)
- [Cap rate](https://canakeys.com/glossary/cap-rate)
- [The numbers we publish](https://canakeys.com/data)