Question 1
Which metric represents the ratio of a property's net operating income to its total value or purchase price?
Correct Answer:
Capitalization rate
Question 2
Net Operating Income (NOI) is calculated by subtracting which of the following from effective gross income?
Correct Answer:
Operating expenses excluding debt service
Question 3
A property generates a potential gross income of $500,000 with a 5% vacancy rate. What is the effective gross income?
Correct Answer:
$$475,000
Question 4
Which approach to real estate valuation estimates value based on the income a property is expected to produce?
Correct Answer:
Income capitalization approach
Question 5
What does a Debt Service Coverage Ratio (DSCR) of 1.25 indicate?
Correct Answer:
The property's NOI is 25% more than the annual debt service
Question 1
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About this Exam

Prepare with the IREM Certified Property Manager (CPM) Certification Exam practice quiz. This question bank includes 86 questions covering property, management, income, gross, and real. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IREM Certified Property Manager (CPM) Certification Exam

This practice set contains 86 questions from the matching question bank and focuses on property, management, income, gross, and real. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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