The income remaining after developing effective gross income and allowing for operating expenses and reserves for replacement is known as ________.

The term that accurately describes the income remaining after developing effective gross income and accounting for operating expenses and reserves for replacement is known as net operating income (NOI). This figure is crucial for appraisers and real estate investors, as it represents the income generated by a property after all necessary expenses of operation are deducted, but before financing costs and taxes are considered.

Net operating income is widely used to assess a property's ability to generate profit from its operations. It is a key metric in the valuation of income-producing properties, as it provides a clearer picture of an asset's performance under typical operating conditions. Investors and appraisers rely on NOI to make informed decisions about property investment and valuation.

In contrast, the other terms do not specifically convey the same meaning. Net profit typically includes deductions for financing and taxes, which are not applicable when calculating NOI. Gross income refers to total income generated before any deductions, and effective income is not a standardized term in real estate finance, making net operating income the most precise and appropriate choice in this context.