Projection assumptions
Expense Growth %
Annual operating-expense inflation. National average ~2-3%; tracks CPI more closely than rent.
Why Expense Growth % matters
Expense growth almost always lags rent growth in healthy markets — that's how NOI compounds. But in inflation-shock periods (2021-2023), expenses (especially insurance + property tax) outpaced rent, eating NOI. Don't assume expense growth < rent growth blindly.