Definition: In a basic rental-income calculation, PGI is the rental income possible at full occupancy before vacancy, collection losses, and operating expenses.
Example
A building has ten units renting for $1,000 per month each. Annual potential rent is 10 × $1,000 × 12 = $120,000.
Keep the distinction clear
Follow the problem’s treatment of other income, such as parking or laundry. If it is already included in the stated PGI, do not add it again when calculating effective gross income.
Related terms
Effective Gross Income (EGI) · Vacancy and Collection Losses · Net Operating Income (NOI)
Keep studying
Vacancy and Collection Loss: Calculate EGI and NOI
References: OCC archive: Income-property financial analysis
Pronunciation (US): puh-TEN-shuhl GROHS IN-kum; PGI: pee-jee-EYE (capitals show stress)
Pronunciation reference: Merriam-Webster
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