Yes. If you buy a 2- to 4-unit home and live in one unit, FHA and Fannie Mae can count rent from the other units to help you qualify. For a purchase, both typically use 75% of the rent. The other 25% covers empty months and upkeep. FHA uses 75% of the lesser of the appraiser's market rent or the lease. For a 3- or 4-unit home, FHA adds a self-sufficiency test: 75% of the market rent for all units, including yours, must cover the full house payment. Fannie Mae can also count some rent from one accessory dwelling unit (ADU), up to 30% of your qualifying income.
Living in one side of a duplex and renting the other is often called "house hacking." In Nashville, duplexes and homes with a backyard cottage are common in some neighborhoods. The rent can make a big difference in what you qualify for.
| FHA | Fannie Mae (conventional) | |
|---|---|---|
| Rent used on a purchase | 75% of the lesser of the appraiser's market rent or the lease | 75% of the monthly gross rent |
| 3–4 unit extra test | Self-sufficiency: 75% of market rent for all units must cover the full payment (PITI) | No self-sufficiency test |
| ADU rent | Allowed with limits; ADU rent capped at 30% of qualifying income | One ADU; rent capped at 30% of qualifying income |
| Landlord experience | Not required to count the rent | With less than 12 months of experience, rent can offset the new home's payment only |
This is simple math to show the rule. It is not a quote.
| Amount | |
|---|---|
| Market rent for the unit you don't live in | $1,800 a month |
| 75% counted | $1,350 a month |
| How it helps | That $1,350 is added to your income (FHA) or used against the new payment, depending on the loan and your experience |
Want to buy a rental you won't live in instead? See DSCR loans for investors and second home vs. investment property.
Yes. FHA and Fannie Mae can count rent from the unit you don't live in. They typically use 75% of the rent.
The other 25% covers empty months and repairs. It makes the math more careful.
For 3- and 4-unit homes, 75% of the market rent from all units, including yours, must cover the full house payment.
Not for FHA. For Fannie Mae, if you have less than 12 months of landlord experience, the rent can only offset the new home's payment.
It can, with limits. Fannie Mae and FHA cap ADU rent at 30% of the income used to qualify.
Not always on a purchase. The appraiser can estimate market rent. If there is a lease, FHA uses the lower of the two.
Looking at a duplex or a home with an ADU in Nashville? Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Figures checked October 11, 2026. Rules and rates can change. Examples are for illustration only and are not a loan offer.
