The ______ can be used to calculate the occupancy rate and rent required to make a profit on an income property.

The break-even ratio is a critical metric used in real estate investment analysis, particularly for income properties. It helps investors determine the point at which income generated from the property covers the total operating expenses and debt service, allowing for the assessment of occupancy rates and rental pricing necessary to achieve profitability.

By using the break-even ratio, an investor can analyze how changes in occupancy rates affect cash flow and profitability. If occupancy falls below the break-even point, the property will not generate enough revenue to cover its expenses, highlighting the importance of maintaining a certain occupancy level to remain profitable.

This ratio essentially aids in understanding the balance between income and expenses, making it an essential tool for investment decision-making. It specifically addresses the direct relationship between revenue needed and operational costs, which makes it an ideal choice for evaluating the financial health of income properties.