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House Hacking & Multi-Unit Affordability

Buy a 2-4 unit property, live in one unit, and let the tenants cover most of the mortgage. Models owner-occupied multi-unit financing and what you would actually pay each month after rent.

Property

You occupy Unit 1 · 1 rental unit

$
5% — $22,500
0% — $040% — $180,000
%

Monthly Costs

$
$
$

Your Finances

$
$

Rental Units

1 unit rented
Unit 1 — You Live Here

Owner-occupied unit

Unit 2 (Rental)
$

Your Effective Monthly Housing Cost

$1,594

after 53.0% offset from rent ($1,800/mo)

Rent covers 53.0% of PITIFull PITI $3,394.17

Total PITI Payment

$3,394.17

P&I $2,844.17

Gross Monthly Rent

$1,800.00

$21,600/yr

Qualifying Rent (75%)

$1,350.00

lender uses this figure

Units to Break Even

2 of 1

avg $1,800.00/unit

Debt-to-Income Analysis

Without rental income (traditional DTI)54.2% DTI
45% guideline
With qualifying rent offset (lender DTI)34.9% DTI
45% guideline
Qualifying rent ($1,350.00/mo) reduces your effective housing expense, lowering DTI from 54.2% to 34.9%.

Estimated Affordable Purchase Price

$561,676

at 45% DTI guideline, 5% down, with qualifying rent

Minimum Down Payment by Program

For owner-occupied 2-unit properties

FHA

Owner-occupied 1–4 units

3.5%

$15,750

Conventional

2-unit: 15% min

15%

$67,500

VA

Eligible veterans only

0%

$0

At 5% down on a 2-unit, FHA is likely your best conventional path. Conventional requires 15% for this unit count.

Monthly Payment Waterfall

Principal & Interest$2,844.17
Property Tax$400.00
Insurance$150.00
Total PITI$3,394.17
Rental Income Offset− $1,800.00
Effective Monthly Cost$1,594.17

How House Hacking Works

1.Buy a 2–4 unit property with owner-occupied financing (lower rates & down payments).
2.Live in one unit. Rent the others at market rates.
3.Tenants pay a portion (or all) of your mortgage — your effective housing cost drops.
4.Lenders use 75% of market rent to qualify you, reducing DTI and raising buying power.

Estimates only. Down payment minimums, qualifying rent guidelines, and loan programs vary by lender and change frequently. Consult a licensed loan officer for actual qualification.

The short answer

Can I buy a duplex in Portland and rent out the other unit?

Yes — a 2-4 unit property you live in qualifies for owner-occupied financing, which means far lower down payments than an investment loan, and lenders will usually count a portion of the projected rent as income. That combination is why house hacking is often the cheapest way into Portland real estate.

Investment property loans →Home purchase loans →

Run your numbers with us

A calculator gives you an estimate. A conversation gives you the number you can actually plan around — David and Bri will walk you through it down to the decimal.

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