House Hacking Calculator

What Is House Hacking?

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 your tenants offsets your mortgage and expenses — often dramatically reducing your cost of living compared to renting.

How This Calculator Works

Enter your target property details and current rent. The calculator computes your total monthly housing expenses (PITI + HOA + maintenance), subtracts the projected rental income from your non-owner units (adjusted for vacancy), and shows your true out-of-pocket cost each month. It also projects your five-year equity growth from both principal paydown and home appreciation.

Key Metrics

• Monthly Out-of-Pocket — Your real housing cost after rental income offsets your expenses.
• Savings vs Renting — How much less (or more) you pay compared to your current rent.
• Cash-on-Cash Return — Your annual net cash flow as a percentage of your down payment.
• 5-Year Equity — Projected equity from principal paydown plus home appreciation.

Tips for Success

• FHA loans allow as little as 3.5% down on properties up to 4 units if you owner-occupy.
• Budget 5–8% vacancy to stay conservative — even good tenants eventually move.
• A fourplex maximizes rental income while still qualifying for residential financing.
• Factor in reserves for capital expenditures (roof, HVAC) beyond routine maintenance.

Related Tools

• DSCR Calculator — Check if your rental income qualifies for a DSCR loan
• Rent vs Buy Calculator — Compare renting vs buying your house hack
• 1099 Tax Estimator — Estimate taxes on your rental income