What is house hacking and how does it work?

House hacking means buying a property, living in part of it, and renting out the rest. This can be renting spare bedrooms, a basement unit, or units in a 2-4 unit building. Rental income offsets your mortgage.

Can I house hack with an FHA loan?

Yes. FHA loans allow 3.5% down on 1-4 unit properties if you live in one unit. This is the most common house hacking strategy for first-time buyers.

How much can I reduce my housing cost by house hacking?

Depends on rent-to-mortgage ratio. Many house hackers reduce housing costs by 50-100%. Some achieve positive cash flow, meaning they get paid to live there.

What are the tax benefits of house hacking?

You can deduct expenses proportional to rented space: mortgage interest, property taxes, insurance, repairs, and depreciation. Consult a CPA for your specific situation.

House Hacking Calculator | Free Rental Income Analysis

Property & Financing

Purchase Price ($)

Down Payment (%)

FHA: 3.5% | Conventional: 5-20%

Interest Rate (%)

Loan Term (years)

Property Tax ($/month)

Insurance ($/month)

Closing Costs ($)

Unit Details

Number of Units

Your Unit's Market Rent ($)

What you'd pay to rent a similar unit

Total Rent from Other Units ($/month)

Combined rent from all units you're renting out

Operating Expenses

Vacancy (%)

5% = ~18 days/year vacant

Maintenance (%)

5-10% typical for repairs

CapEx Reserves (%)

For roof, HVAC, etc.

Utilities You Pay ($/month)

If you cover any utilities for tenants

House Hacking Guide

What is House Hacking?

House hacking means buying a multi-unit property (duplex, triplex, or fourplex), living in one unit, and renting out the others. The rental income offsets your mortgage, reducing or eliminating your housing cost.

Why House Hack?

Live for free (or close to it) - Tenants pay your mortgage
Low down payment - FHA loans allow 3.5% down on 2-4 units
Build wealth - Gain equity while saving on housing costs
Learn landlording - Start small with tenants next door
House hack again - Move out after a year, rent your unit, repeat

FHA Self-Sufficiency Test (3-4 Units)

For 3-4 unit properties, FHA requires the property to be "self-sufficient": 75% of the total rental income (including your unit) must exceed the mortgage payment (PITI). This calculator shows if you pass.

Typical House Hack Scenarios

Duplex: Live in one, rent one. Often reduces housing cost 50%+
Triplex: Live in one, rent two. Often live for free or positive cash flow
Fourplex: Live in one, rent three. Best cash flow potential

Tips for Success

Buy in areas with strong rental demand
House hack for at least 1 year (FHA requirement)
Screen tenants carefully - they're your neighbors
Set aside reserves for vacancies and repairs
Consider moving out after a year and renting all units

House Hack Calculator