Living in one unit of a multi-unit property while renting the others can turn “the cost of owning” into “getting paid to live somewhere,” if rental income is high enough.
How it works
The total monthly mortgage payment (principal, interest, taxes, insurance) minus rental income from the other units or rooms gives the effective housing cost — often far below comparable market rent for a similar unit alone.
What this does not include
This doesn’t account for the additional landlord responsibilities (finding tenants, maintenance, vacancy risk) that come with renting out part of an owner-occupied property — a real cost in time and risk beyond the pure dollar calculation.
How to use this calculator
- Enter the total monthly mortgage payment and rental income from the other units or rooms.
Frequently asked questions
Can house hacking result in negative housing cost?
Yes — if rental income exceeds the mortgage payment, the owner is effectively paid to live there, a real and often-cited outcome in favorable rental markets.
What loan types work well for house hacking?
Owner-occupant loans (like FHA loans with lower down payments) often apply to small multi-unit properties (up to 4 units) if the owner lives in one unit, making this strategy more accessible than traditional investment property financing.
Does house hacking affect taxes?
Yes — a portion of the property becomes a rental for tax purposes, allowing depreciation and expense deductions on that rented portion, while the owner-occupied portion remains a personal residence.
