House Hacking Calculator

Calculate your true housing cost when tenants pay part of your mortgage. Model duplex, triplex, and fourplex strategies with FHA 3.5% down, the self-sufficiency test, live-in flip, and a 5-year wealth accumulation plan.

$
%
%
yrs
$/mo
%
Your Effective Monthly Housing Cost
$1,936
$2,951 P&I+PMI offset by $2,090 rent
P&I + PMI: $2,951
Property Tax: $375
Insurance: $200
Maintenance: $300
Rental Income Offset: $2,090
Full Mortgage (P&I)
$2,773
Rental Income
$2,090
Down Payment Needed
$22,500
Monthly Cash Flow
-$861

Duplex vs triplex vs fourplex — more units mean more income but also more price, management, and FHA qualifying complexity.

$
$
$
$
Duplex
$683/mo
Price: $450,000
Down (5%): $22,500
Mortgage: $2,773/mo
Rental income: $2,090/mo
Rented units: 1
Triplex
Free!
Price: $675,000
Down (5%): $33,750
Mortgage: $4,159/mo
Rental income: $4,180/mo
Rented units: 2
Live rent-free!
Fourplex
Free!
Price: $900,000
Down (5%): $45,000
Mortgage: $5,546/mo
Rental income: $6,270/mo
Rented units: 3
Live rent-free!

Year-by-year house hacking financial projection: equity buildup, cash flow, and net worth growth.

yrs
%
%
YearHome ValueMortgage Bal.EquityRental IncomeCash FlowCum. CF
1$465,750$422,944$42,806$25,832-$22,478-$22,478
2$482,051$418,071$63,981$26,607-$21,703-$44,181
3$498,923$412,858$86,065$27,406-$20,905-$65,086
4$516,385$407,282$109,103$28,228-$20,083-$85,169
5$534,459$401,319$133,140$29,075-$19,236-$104,405
Year 5 Equity
$133,140
Appreciation + mortgage paydown
The FHA Repeat Strategy: Year 1: Buy property 1 with 3.5% FHA down, live in it, collect rent. Year 2: After 12 months occupancy, buy property 2 with another FHA loan (you can have one FHA loan at a time while moving between properties). Year 5-7: Have 3-4 properties, all originally bought with FHA, portfolio generating significant passive income.

How to Use This House Hacking Calculator

House hacking means buying a multi-unit property (duplex, triplex, or fourplex), living in one unit, and renting out the others to offset — or even eliminate — your mortgage payment. This calculator shows you exactly how much your tenants reduce your housing cost.

Quick Calculator

Enter your Property Price, Down Payment (as low as 3.5% with FHA), Interest Rate, Number of Units, and estimated Rental Income from the other units. The result shows your effective monthly housing cost after rental income, and whether you could live for free.

Advanced Analysis

The Strategy Comparison tab compares duplex vs triplex vs fourplex at the same per-unit price. The FHA House Hack tab shows the 3.5% down FHA option, including the self-sufficiency test for 3-4 unit properties. The Live-In Flip tab models buying, renovating while living there, and selling tax-free after 2 years.

Professional Simulator

The 5-Year Plan shows year-by-year equity, cash flow, and home value growth with the FHA repeat strategy. The Tax Benefits tab calculates depreciation and expense deductions on the rented portion. The Wealth Accumulation tab compares house hacking wealth vs renting and investing.

House Hacking Formulas

Effective Monthly Cost = Mortgage (P&I + PMI) + Expenses − Rental Income
Rental Income (Effective) = Gross Rent × (1 − Vacancy Rate)
Living for Free = Rental Income ≥ Total Monthly Housing Costs
FHA Self-Sufficiency (3-4 units): 75% × Gross Rents ≥ PITI Payment

The key insight: your mortgage payment is fixed, but rental income reduces your out-of-pocket cost. On a duplex, a tenant might pay $1,500/month toward your $2,200 mortgage — making your effective housing cost $700/month. On a fourplex with strong rents, you might live for free and even generate positive cash flow.

Example: First-Time House Hacker in Indianapolis

Kevin's Duplex House Hack

Kevin, 27, bought a duplex in Indianapolis for $380,000 with 3.5% FHA down. He lives in the top unit and rents the bottom unit.

Purchase price$380,000
FHA down payment (3.5%)$13,300
Loan amount + MIP$373,345
Monthly mortgage (P&I)$2,470
Monthly MIP$265
Taxes + insurance$500/mo
Rental income (bottom unit)$1,800/mo
Kevin's effective cost$1,435/mo
Market rent for same space$1,600-$1,900/mo

Kevin is paying less per month than he would to rent a comparable unit, AND building equity. After 2 years, he buys a triplex with another FHA loan and rents out both units of the original duplex — now cash-flow positive on property 1 while his triplex tenants cover most of property 2's mortgage.

Frequently Asked Questions

House hacking is buying a multi-unit property (or a property with an accessory dwelling unit), living in one unit, and renting the others. The rental income offsets your mortgage payment, dramatically reducing — or eliminating — your housing cost. It's one of the most reliable wealth-building strategies for first-time buyers because you get residential financing (better rates, lower down payment) on an income-producing asset.
Yes. FHA loans allow 3.5% down on 2-4 unit properties as long as you intend to occupy one unit as your primary residence. For 3-4 unit properties, the FHA self-sufficiency test applies: 75% of gross rents must cover the entire PITI payment. FHA loan limits for multi-family are higher than single-family — check FHA.gov for your county's limits.
For 3-4 unit properties only, the FHA requires that 75% of the property's gross rental income (including your unit) covers the full PITI payment (principal, interest, taxes, insurance). This ensures the property is somewhat self-sustaining. It does NOT apply to duplexes. If your property fails this test, you can use conventional financing instead.
Yes, with conditions. FHA allows you to count 75% of the expected rental income from other units to offset the mortgage payment when qualifying. If the units are currently occupied with signed leases, it's straightforward. If vacant, you'll need an appraisal-based rental income estimate. Lenders use 75% to account for vacancy and expenses.
Key risks: (1) Tenant problems — you live next door to them, so bad tenants affect your daily life. (2) Vacancies hit harder — one empty unit on a duplex means 50% income loss. (3) Landlord responsibilities — you handle maintenance, leases, and tenant issues directly. (4) Overestimating rents — always verify actual market rents before buying. Build in 5-8% vacancy and 10-15% for maintenance.

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