Gross Potential Rent (GPR)

Gross potential rent (GPR) is the total rent a property would collect if every unit were leased at full market rent for the entire year — the theoretical maximum, before any deductions. It's the very top line of the income statement.

How it's used: GPR is the starting point of the income build. Subtract vacancy and credit loss and add other income to get effective gross income; subtract operating expenses from that and you reach NOI. Underwriters also separate GPR at in-place rents from GPR at market rents — the gap between them is the loss to lease.

Why it matters: GPR is a potential, not a collection. A pro-forma that quietly treats GPR as actual income — assuming 100% occupancy and zero bad debt — overstates revenue and every number below it. The discipline is to start from a defensible GPR and then haircut it to what the property will really bank.

Formula: GPR = Σ (units × market rent × 12) — or, for commercial space, rentable SF × market rent per SF.

For a quick screen that skips the full income build, see the gross rent multiplier. The multifamily proforma calculator and the multifamily underwriting guide walk the GPR-to-NOI build in full.