Net Operating Income (NOI) is a key financial metric used in real estate to assess the profitability of an income-generating property. It is calculated by subtracting operating expenses, such as maintenance and property management costs, from the total revenue generated by the property, which includes rent and other income sources. NOI does not account for financing costs or taxes, making it a useful measure for evaluating property performance. Investors and property managers often use NOI to compare different properties and make informed decisions about investments. A higher NOI indicates better operational efficiency and profitability, while a lower NOI may signal potential issues that need addressing. Understanding NOI helps stakeholders in the real estate market gauge the financial health of their investments.