What is the term for the total rental income a property would receive if fully leased?

The correct term for the total rental income a property would receive if fully leased is Potential Gross Income (PGI). PGI represents the maximum income a property could generate under ideal conditions, assuming all units are leased at market rates and there are no vacancies. It is an important concept in real estate because it provides a benchmark for property performance and is often the starting point for calculating more specific income metrics.

Other income definitions, such as gross income, may reflect various aspects of income including actual income received, while net income considers expenses and operating costs. Effective Gross Income, on the other hand, accounts for vacancies and rent collection losses, representing a more realistic income scenario for a property. Potential Gross Income stands apart as it purely estimates what the income could be if the property were at full occupancy, making it a crucial figure in property valuations and investment analyses.