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House hacking calculator

House hacking means buying a 2 to 4 unit property, living in one unit and renting the others so the rent covers part or all of your payment. Enter the property and rents to see your net housing cost and how it compares with renting.

Duplex with an owner's garden patio on one side and a separate rental entrance

Your numbers

$
Some owner-occupied programs allow low down payments on 2 to 4 units%
Enter the rate from your own quote or Loan Estimate.%
Annual percent of price%
Per year$
Annual percent of the loan; 0 if none%
Per month, total$
Percent of rents set aside%
Per month$

Results

Educational estimate based on the numbers you enter and common rules of thumb. Not a loan offer, rate quote, approval or financial advice. A licensed loan officer can run your real numbers.

How this calculator works

This calculator estimates what you would pay to live in a 2 to 4 unit property after rent from the other units comes in. It finds the loan by subtracting your down payment from the price, then the principal and interest on a 30-year fixed loan at the rate you enter. Enter the rate from your own quote or Loan Estimate; the field starts empty. It adds monthly property tax and insurance. When the down payment is small enough that mortgage insurance usually applies, it adds that too, at the yearly rate you enter.

Rent from the other units is reduced by the vacancy and repairs share you set aside. Your net housing cost is the full payment minus that kept rent. The tool compares it with the rent you pay now and shows how much of the payment the rent covers.

Limits: the term is fixed at 30 years. HOA dues, utilities you pay as the owner, and repairs beyond your set-aside are not included. Rents are held flat. The comparison with your current rent does not count the equity you build, or the time, turnover and legal duties of being a landlord.

When you apply, a lender may count part of the expected rent from the other units toward your income, based on current leases or an appraiser's estimate of market rent. Rules for 2 to 4 unit homes differ by program, and some programs add extra tests for 3 and 4 unit properties. Owner-occupied financing requires you to live in one unit as your main home. Lenders may also ask for more reserves on multi-unit homes.

Example: enter a $700,000 price, $3,000 a month of rent from the other units and your current rent, then add the rate from your quote.

Related: FHA, VA and USDA loans · Conventional loans · Rent vs. buy calculator

Common questions

Can I use an FHA or VA loan for a house hack?

FHA and VA loans can be used for 2 to 4 unit properties when you live in one of the units, subject to program rules. Some conventional programs also allow low down payments on owner-occupied multi-unit homes.

Will lenders count the rent?

Often, part of the expected rent from the other units can help you qualify, based on leases or an appraiser's estimate. Rules vary by program.

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