House Hack Calculator

House hacking is a real estate strategy where you buy a multi-unit property (duplex, triplex, or fourplex), live in one unit, and rent out the others. The rental income from tenant units offsets your mortgage and expenses, dramatically reducing — or even eliminating — your housing cost. Because you live in the property, you can often qualify for owner-occupied financing with lower down payments (as low as 3.5% with FHA) and better interest rates than traditional investment property loans.

Yes. FHA loans allow you to purchase properties with up to four units as long as you live in one of them as your primary residence. This means you can buy a duplex, triplex, or fourplex with as little as 3.5% down. FHA loan limits vary by county and number of units — for a duplex, the 2026 FHA limit in most areas is higher than for a single-family home. You must move in within 60 days of closing and live there for at least one year. After that, you can move out and keep renting all units.

For many first-time investors, house hacking is one of the best strategies to build wealth. The key advantages are: (1) dramatically reduced housing costs — many house hackers live for free or near-free, (2) low down payment with owner-occupied financing, (3) you gain hands-on landlord experience with tenants next door, and (4) you build equity and cash flow simultaneously. The main trade-offs are living in close proximity to tenants and the responsibility of property management. Run the numbers with this calculator to see if it makes sense for your situation.

Savings vary widely by market, property type, and purchase price, but many house hackers reduce their effective housing cost by 50-100%. In some cases, rental income exceeds all expenses, meaning you live for free and generate positive cash flow. For example, on a $350,000 fourplex with $1,200/unit rents, your three tenant units could generate $3,600/month — often enough to cover the entire mortgage, taxes, and insurance. Use this calculator to estimate your specific savings versus renting.