In one sentence
The occupancy level at which a property's income exactly covers its operating expenses and debt service.
The longer version
Break-even occupancy tells a lender how much cushion exists before a property cannot pay its loan. A break-even of 75% means the property can lose a quarter of its occupancy before trouble.
It is a downside metric, complementing DSCR by expressing coverage as an occupancy threshold rather than a ratio.
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