What Is House Hacking?

House hacking means buying a multi-unit property — typically a duplex, triplex, or fourplex — living in one unit, and renting out the others so tenants help pay your mortgage. Because you occupy the property, you can use owner-occupied financing like FHA or VA loans with down payments as low as 3.5% or even 0%.

For example, you purchase a triplex for $450,000 using an FHA loan with 3.5% down ($15,750). Your total monthly payment including taxes and insurance is $3,200. You rent the two other units for $1,400 each — $2,800 per month — leaving you with an effective housing cost of just $400. Some house hackers cover their entire payment and even cash flow from day one. When you eventually move out, the property becomes a fully rented investment.

Key Facts

• Low entry cost: FHA loans allow 3.5% down on 2–4 unit owner-occupied properties; VA loans allow 0% down
• Property types: Duplexes, triplexes, and fourplexes are the most common house-hack properties
• FHA limit: You can use FHA financing on properties up to 4 units as long as you live in one
• Rental income for qualifying: Lenders may count 75% of projected rental income to help you qualify
• Live-in requirement: Most owner-occupied loans require you to live in the property for at least 12 months
• Wealth building: You build equity while tenants cover most or all of your housing expense

Frequently Asked Questions

Do I need landlord experience to house hack?

No, but you should be prepared to manage tenants or hire a property manager. Living on-site makes management easier since you can handle minor issues quickly. Start by learning your state’s landlord-tenant laws and screening tenants thoroughly with credit and background checks.

How long do I have to live in the property?

Most owner-occupied loan programs require you to use the property as your primary residence for at least 12 months. After that, you can move out and keep the property as a rental investment without refinancing, as long as you continue making payments on the original loan.