Gross Scheduled Income (GSI) represents the theoretical top‐line revenue a property can generate at full occupancy with no collection losses. For investors, it reveals maximum earning potential. Lenders rely on GSI to gauge debt‐service capacity, while property managers use it as a benchmark to identify revenue gaps and boost ancillary streams.
In the income cascade, GSI sits at the apex. From there you subtract vacancies and credit losses to arrive at Effective Gross Income (EGI), then deduct operating expenses to reach Net Operating Income (NOI). GSI is the foundation for comparing properties and calculating valuation metrics like cap rates and Gross Rent Multiplier.
GSI is the total potential rental and ancillary income a property would produce if every unit were leased at market rents and all fees were collected, with zero vacancies or concessions.
GSI = (Scheduled Rent per Unit × Total Units) + Additional Income Streams
This is the contractual monthly rent for each unit at market rate.
Include regular charges such as parking stalls, pet fees, laundry income, storage rentals and vending revenues.
Do not deduct any vacancy allowance, bad debt, concessions or collection losses. Those adjustments belong in EGI, not GSI.
Gather a rent roll showing each unit’s market rent and any ancillary fees.
Add up every unit’s rent plus all ancillary charges as if fully occupied.
• Single-Family: One home at $2,000/month → Annual GSI = $2,000×12 = $24,000
• Four-Unit Building: Rents of $1,000, $1,100, $900, $1,200 + $50×4 parking = ($4,200+$200)×12 = $52,800
PGI is often used interchangeably with GSI, but some analysts include certain non‐scheduled or one-time rents in PGI that GSI excludes.
EGI equals GSI minus vacancy and credit loss allowances. It represents actual expected receipts.
NOI starts with EGI then subtracts operating expenses. Since GSI feeds into EGI, it indirectly underpins NOI calculations.
Only include regularly scheduled fees. Exclude one-time moves-in fees or lease-up bonuses.
Reserve vacancy and bad debt in EGI, not GSI. Mixing them skews top‐line analysis.
Audit service contracts, parking leases and utility reimbursements to capture all scheduled streams.
GSI provides a consistent, unadjusted gross revenue baseline required by many agencies and lenders for underwriting.
By establishing the maximum gross income, lenders can apply cap rates or gross rent multipliers to value the asset and set loan sizing.
Using GSI for every property in a comp set allows apples-to-apples comparisons before adjusting for local vacancy or expense variations.
Imagine a four-unit complex with rents of $1,000, $1,050, $950, $1,100; two parking spots at $50 each; laundry at $200/month.
Monthly Rent Total = $4,100; Parking = $100; Laundry = $200 → Monthly GSI = $4,400 → Annual GSI = $52,800
Submit the $52,800 GSI for debt service analysis. Compare to pro forma EGI to identify vacancy buffers and set realistic cash flow targets.
Scheduled rents for all units plus recurring ancillary fees (parking, pet, storage, laundry, etc.).
No. Vacancy and credit losses belong in EGI, not in the Gross Scheduled Income calculation.
At least annually or whenever market rents change or new fee schedules are introduced.
No formal regulations—appraisal standards and lender templates generally outline how to compute GSI, but practices can vary by institution.
1. Start every pro forma with a GSI line item based on market rents and fees.
2. Layer in realistic vacancy and credit loss assumptions to derive EGI.
3. Subtract expenses to forecast NOI and assess debt coverage ratios.
