Calculate your net housing cost after rental income from extra units. Compare house hacking savings vs. a standard owner-occupied mortgage payment.
House hacking is the strategy of purchasing a multi-unit property, living in one unit, and renting out the remaining units to offset your mortgage payment. It is one of the most accessible paths to real estate investing because you can qualify for owner-occupied financing with as little as 3.5% down (FHA) or 5% down (conventional) while building equity and generating rental income.
This calculator shows your net housing cost after subtracting the rental income from your tenants. It compares your effective monthly housing expense to what you would pay at a standard single-family home, helping you quantify the financial advantage of house hacking. Whether you're evaluating a duplex, triplex, or fourplex, this tool gives you the numbers you need to make a confident decision.
The calculator also estimates your annual savings, the break-even point where tenants cover your entire mortgage, and the long-term wealth-building impact of living for free while your property appreciates and your mortgage balance declines.
House hacking can reduce your housing cost to near zero — or even make it cash-flow positive — but only if the numbers work. This calculator helps you model multiple scenarios: different rent amounts, vacancy rates, and maintenance reserves so you can enter the deal with realistic expectations instead of optimistic guesses.
Gross Rental Income = Number of Rented Units × Rent per Unit Effective Rental Income = Gross × (1 − Vacancy Rate) Net Housing Cost = Mortgage Payment − Effective Rental Income + Maintenance Reserve Monthly Savings = Standard Mortgage − Net Housing Cost Annual Savings = Monthly Savings × 12
Result: Net housing cost = $515/month | Annual savings = $22,620
With a $2,400 PITI on a triplex, renting 2 units at $1,100 each produces $2,200 gross rent. After 5% vacancy ($110) and 5% maintenance ($110), effective income is $1,980. Your net cost is $2,400 − $1,980 + $95 = $515/month. Compared to a standard $2,400 mortgage, you save $1,885/month or $22,620/year.
House hacking is widely considered the best first real estate investment because it combines a primary residence with an income property. By living in one unit of a multi-family building, you access owner-occupied financing rates (typically 0.5–1% lower than investment property loans) while still generating rental income.
Duplexes are the easiest entry point, but triplexes and fourplexes offer more rental income to offset your mortgage. Look for properties where the combined rent from non-owner units covers at least 70–80% of your total PITI payment. In strong markets, it's possible to find deals where tenants cover 100% of your housing costs.
House hacking accelerates wealth in three ways: reduced living expenses free up cash for saving and investing, your tenants pay down your mortgage principal, and the property appreciates over time. After 5–10 years, a house hacker who repeats the strategy can own multiple cash-flowing properties with substantial equity.
House hacking means buying a multi-unit property (duplex, triplex, or fourplex), living in one unit, and renting the others. The rental income offsets your mortgage, dramatically reducing your housing cost. Some house hackers even generate positive cash flow, effectively living for free.
Yes, FHA loans allow 1–4 unit properties with as little as 3.5% down, as long as you occupy one unit as your primary residence for at least 12 months. This is the most popular financing method for first-time house hackers.
For residential 2–4 unit properties, 5–10% vacancy is standard. In high-demand markets, 5% may be appropriate; in softer markets or with student housing, budget 8–10%. Never assume 0% vacancy — turnover, repairs, and non-payment happen.
House hacking builds equity, offers tax benefits (depreciation, mortgage interest deduction), and typically costs less per month than renting an equivalent home. Even if your net cost is similar to rent, you're gaining appreciation and loan paydown that renters miss.
You're a landlord living next to your tenants, which can be uncomfortable. Multi-unit properties cost more than single-family homes, maintenance is higher, and you're financially exposed if tenants stop paying. It also requires more hands-on management than owning a simple primary residence.
Absolutely. Once you've satisfied the owner-occupancy requirement (usually 12 months), you can move out and rent all units. The property becomes a full rental investment. Many investors repeat this strategy: buy a new multi-unit every 1–2 years, live in it, then move on.