What is operating expense ratio?
OER: total operating expenses ÷ effective gross income; the share of EGI consumed by operating costs. Roughly 35–50% for many stabilized multifamily assets.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.