If you’re curious about “house hacking,” my house hacking calculator could be useful.
Let me break it down quickly for those who aren’t sure what house hacking is.
It’s simply buying a multi-unit property (2-4 units), living in one and renting out the others.
In the process, you can possibly cover much of your own housing costs while also enjoying an appreciating asset.
But you also have to make sure the deal pencils, and be prepared to be a live-in landlord!
House Hacking Calculator
See what it actually costs to house hack a duplex, triplex, or fourplex — your effective monthly housing cost while you live in one unit and rent out the rest, plus what your cash flow looks like once you move out and rent every unit.
Purchase & Financing
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Pre-filled with a typical minimum for this loan type — edit if yours is different
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yrs
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Of purchase price, per year — check your local rate for accuracy
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Multi-unit properties often cost more to insure than a single-family home
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Of loan amount, per year — applies until removed per your loan’s rules
Subsequent use carries a higher funding fee unless you’re putting at least 5% down
💡 FHA and VA loans both allow 2-4 unit owner-occupied properties — this is the financing combination most house hackers use, since it lets you buy with a low or 0% down payment as long as you live in one of the units, typically within 60 days of closing and for at least 12 months.
💡 Conventional down payment minimums dropped to 5% on 2-4 unit purchases as of late 2025 — Fannie Mae and Freddie Mac now allow 95% LTV on owner-occupied multi-unit purchase loans at standard conforming loan amounts, up from 85% (2-unit) and 80% (3-4 unit) previously. High-balance/super conforming loan amounts — above the standard conforming loan limit for that unit count in your area — still cap lower, generally around 15% down for a duplex and 25% down for a triplex or fourplex, so confirm which tier your loan amount falls into.
💡 FHA MIP is auto-calculated from HUD’s official rate schedule — based on your loan amount, loan term, and LTV, per Mortgagee Letter 2023-05. It uses a $726,200 base loan amount threshold, which is a single flat national figure and doesn’t scale up for 2-4 unit properties the way FHA’s own multi-unit loan limits do. Leave the PMI/MIP Rate field blank to use the auto-calculated rate, or overwrite it with a rate your lender quoted directly.
💡 The FHA upfront MIP (1.75% of your base loan amount) and the VA funding fee are one-time costs, calculated here and financed into your loan amount by default — since that’s the typical arrangement. Uncheck the box above if you plan to pay it in cash at closing instead; doing so lowers your loan amount and monthly payment slightly, but increases the cash you need on hand.
Property & Rental Income
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What this unit would rent for if you weren’t living in it — used for comparison only
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Operating Assumptions
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Portion of the year a rented unit typically sits empty between tenants
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Of gross rent, set aside for repairs and eventual big-ticket replacements
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Of collected rent — only applied to the after-you-move-out scenario below
After You Move Out — Full Rental Cash Flow
If every unit, including the one you used to live in, were rented at market rent.
Where The Rent Goes (Full Rental Scenario)
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Gross Rent
Itemized Estimate
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, legal, or tax advice. It does not guarantee loan approval, a specific interest rate, or a specific rent amount. Default assumptions for down payment and PMI/MIP reflect general national benchmarks as of this writing and vary by lender, credit score, loan amount, and location — FHA mortgage insurance in particular is more complex than a flat annual rate in some cases (it can vary by loan-to-value and loan term, and may remain for the life of the loan on some loans), so treat the figure here as an approximation and confirm your actual premium with a lender. One-time costs are handled as follows: the FHA upfront MIP (1.75% of your base loan amount) and the VA funding fee (0.5% to 3.3% of your base loan amount depending on down payment and prior use) are calculated and, by default, financed into your loan amount — the typical arrangement — which is reflected in the loan amount, monthly payment, and ongoing MIP shown; uncheck the financing option if you plan to pay either fee in cash at closing instead. Standard closing costs (title, escrow, lender fees, etc.) are separate from these two specific loan-level fees and are not included in this calculator. VA funding fee exemptions shown reflect the general categories published by the VA (service-connected disability rating, Purple Heart recipients on active duty, and qualifying surviving spouses); confirm your specific exemption status with your lender or the VA. Rental income, vacancy, and maintenance figures are estimates you provide and are not verified against local market data — use a recent rental comps report or a property manager’s opinion of rent for a more accurate figure. Cash-on-cash return is calculated against your total cash needed to close (down payment plus any upfront fee you chose to pay in cash rather than finance) and does not include additional closing costs or initial repairs, which would lower the actual return. The FHA Self-Sufficiency Test shown for 3-4 unit FHA purchases reflects HUD Handbook 4000.1’s standard 75% haircut on appraiser-estimated market rent for all units; your lender’s appraiser may apply a different vacancy factor if it’s higher than 25%, and this test is separate from and does not replace your lender’s full underwriting of your personal debt-to-income ratio. Actual results depend on your specific loan terms, local tax and insurance costs, tenant quality, and property condition. Consult a licensed mortgage professional, tax advisor, or real estate agent for guidance specific to your situation.
How to Use the Duplex, Triplex & Fourplex Mortgage Calculator (House Hacking)
This calculator is intended for those who purchase a multi-unit property that they plan to occupy as their primary residence.
A common setup is someone who buys a 2-4-unit property and occupies one of the units while renting out the others.
The “hack” is getting the other tenants to pay off your mortgage for you while you live for free.
And then once you move out, you can rent ALL the units and improve your cash flow.
The potential downside is living adjacent to your tenants, which likely isn’t for everyone. But that’s a decision you need to make on your own outside of this calculator.
To begin, enter a purchase price, financing type, and down payment.
Options include conventional loans, such as those backed by Fannie Mae and Freddie Mac.
Along with government loan options including FHA loans and VA loans.
Many house hackers favor FHA loans because you can put down as little as 3.5% and still finance a four-unit property.
However, you have to occupy one of the units to ensure it’s your primary residence.
A VA loan is even better if you’re eligible because it requires nothing down.
For conventional loans, you’re looking at larger down payments, at least 5% if you wish to purchase a 2-4 unit primary residence.
Anyway, once you’ve entered those details, pop in the mortgage rate, loan term, property tax rate, homeowners insurance premium, and any applicable HOA dues.
You can also choose whether any upfront fee is financed into the loan amount or paid in cash.
Next, you’ve got your property information, including how many units and the market rent for each unit.
You may want to be conservative here because an appraiser might set the market rent lower than you expect for loan qualifying purposes.
The house hacking calculator uses 100% of the gross rent, less vacancy and capex, but when you qualify for a conventional, FHA, or VA loan, they typically use only count 75% of fair market rent.
Basically an appraiser will provide market rents and then 75% of that is used for qualifying purposes. Just something to keep in mind.
You can still rely on the 100% figure in this calculator to determine your cash flow, effective housing costs, and so on.
Finally there are the operating assumptions, which is ongoing vacancy (when the units aren’t occupied) and maintenance and capex.
Remember, being a landlord isn’t a passive position. You have to make sure the units are consistently rented out and well maintained.
It doesn’t hurt to keep these assumptions higher than they might actually be in case things do go sideways.
That way you won’t overestimate all the winning you’ll do as a house hacker.
While You Live There/ After You Move Out
What's neat about the house hacking calculator is it gives you a side-by-side view of the numbers while you're living there. And also once you move out.
So you get to see the math in both scenarios, as most house hackers tend to move on to another property as opposed to staying in one place.
In fact, many house hackers will rinse and repeat, typically because they start when they're relatively young and don't have too many ties to a particular property.
You'll see how your own vacancy affects the numbers and what things look like if you decide to bring on a property management company instead of self-managing.
This can be just as important as the initial purchase to determine if you want to hold onto the property or sell it and move on.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 20 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.
