Which item is included in EGI but not in PGI?

• A. Other income
• B. Operating expenses
• C. Debt service
• D. Capital expenditures

Answer: (A)

In property income modeling, Potential Gross Income is the rent you could collect if every unit were rented at market rate, before subtracting vacancies or adding other revenue sources. Effective Gross Income is the actual income you expect to receive, which means you subtract vacancy and credit losses and add Other Income. That makes Other Income the item that sits in EGI but not in PGI, reflecting additional revenue streams beyond base rent (like laundry, parking, vending, or tenant reimbursements). The other options are costs or financing items that come into play after income is calculated: operating expenses reduce EGI to NOI, while debt service and capital expenditures are cash flow items outside the income line.