House hacking means living in part of a property and renting the rest to offset or eliminate your housing cost.
Common approaches
Buy a duplex, triplex or fourplex, live in one unit and rent the others. Rent spare bedrooms. Build or convert an accessory dwelling unit. Rent the whole house after moving to a new primary residence.
Financing advantages
Owner-occupant loans allow low down payments, such as 3.5% with FHA on one to four units, and may count projected rental income for qualification. Keep cash for repairs and vacancies.
Risks and rules
Being your tenants' neighbor means maintenance calls and tenant issues are close to home. Follow local zoning, landlord-tenant laws and occupancy requirements. Rental income is taxable, but deductions and depreciation can offset it.
Try the numbers
Use our House Hacking Calculator to see this in practice. With its default example (Purchase price: $520,000; Down payment: 5%; Mortgage rate: 6.75%), it shows your effective housing cost: $1,683. Adjust the inputs to match your situation.
Key takeaways
- Rent part of your home to cut housing costs.
- FHA allows 3.5% down on up to four units.
- Follow zoning and landlord laws.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.