Last reviewed 10-31-2026Short-Sale.com Editorialglossary

Monthly Operating Income

Fannie Mae

Updated 10-31-2026

Monthly Operating Income

Income from the rental of an investment property that is determined by reducing the annual effective gross income for the property by the annual operating expenses and dividing the result by 12. This calculation is used to determine whether a borrower who will occupy one unit of a two- to four-unit property as their principal residence qualifies for a mortgage.

Fannie Mae Glossary of Terms

Fannie Mae · p. 31

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