FHA house hacking: buy up to four units with a small down payment.

How it works

You buy a duplex, triplex or fourplex, live in one unit as your primary residence, and rent out the others. Your tenants' rent helps pay the mortgage. FHA loan limits are higher for multifamily properties, so in Orange and Osceola counties a fourplex can go up to $1,041,125 in 2026.

I bought my first fourplex in 2011. Living on site taught me the landlord side fast, and the rent turned my housing payment into an investment.

Using rental income to qualify

Lenders can count a portion of the rent from the other units, usually 75% of current lease or market rent, to help you qualify. Experience as a landlord or cash reserves help, and three and four unit purchases require reserves after closing.

The self sufficiency test

This is the rule that catches people. On three and four unit properties, FHA requires that 75% of the total rent from all units, including the one you live in, covers the full monthly payment: principal, interest, taxes, insurance, mortgage insurance and HOA. Duplexes don't have this test.

In higher priced markets, many triplexes and fourplexes fail it. Run the numbers before you write an offer.

One FHA loan at a time

FHA generally allows one FHA loan at a time, with exceptions. See two FHA loans at once.

FHA vs VA for multifamily

USDA doesn't allow two to four unit properties, so it isn't an option here. See USDA property rules.

If you're a veteran, compare VA first. VA can finance up to four units with no down payment, has no monthly mortgage insurance, and doesn't use the self sufficiency test. See multifamily with VA.

Living there and moving on

You'll need to move in within about 60 days and plan to live there for at least a year. After that, you can move and keep the property as a rental. When you do, refinancing into a conventional or DSCR loan can drop the FHA mortgage insurance and free you to use FHA again on your next home.

A duplex that pays most of the mortgage

Marcus and Elena bought a duplex near downtown Orlando with 3.5% down. They live in one side and rent the other.

Duplexes don't have to pass the self sufficiency test, and the lender counted 75% of the second unit's rent toward their income. Their tenant now covers most of their mortgage.