FHA Self-Sufficiency Test Calculator
House hacking a triplex or fourplex with 3.5% down? FHA counts only 75% of market rent, and it has to cover the whole payment. Check it before you write the offer.
Ideas for you
Load a Texas scenario, then make it yours. Every number updates as you type.
The building
This passes FHA’s test
Rent FHA counts, left over after the full payment.
The payment is 96.2% of the rent FHA counts. 100% or under passes. It stops passing if market rent falls below $1,587 a unit.
The test, line by line
- Market rent, all 4 units
- $6,600
- Less 25% for vacancy and upkeep
- -$1,650
- Rent FHA counts
- $4,950
- Principal & interest on $515,491
- $3,216
- Property tax
- $963
- Insurance
- $350
- FHA mortgage insurance (0.55%/yr)
- $232
- Full payment
- $4,761
- Payment ÷ rent FHA counts
- 96.2%
What this means
Passing the self-sufficiency test is one requirement for a 3 or 4 unit FHA loan. The lender still checks your income, debts, credit, and reserves, and you must live in one of the units.
These results are estimates for educational purposes only and do not constitute a credit decision or loan approval.
HUD’s 75% rent test, step by step
For 3 and 4 unit purchases, HUD asks whether the building can pay its own way. The underwriter takes the appraiser’s market rent for every unit (yours included), keeps 75% of it, and compares that to the full monthly payment.
Passes if 75% × market rent ≥ full payment
- Market rent: the appraiser’s estimate for every unit, including the one you’ll live in, not the current leases.
- The 25%: FHA’s allowance for vacancy and upkeep. It applies even if the building is fully leased.
- Full payment: principal and interest on the loan with upfront MIP added, plus property tax, insurance, monthly FHA mortgage insurance, and any HOA dues.
A $525,000 Bryan fourplex with $1,650 market rent per unit, 3.5% down at 6.375% over 30 years, and Brazos County-level taxes.
- Market rent, all units
- $6,600
- Less 25%
- -$1,650
- Rent FHA counts
- $4,950
- Full payment
- $4,761
- Cushion
- $189
The payment uses 96.2% of the counted rent, so it passes, but narrowly. If the appraiser’s rent comes in under about $1,587 a unit, it fails.
Three levers when a building fails
Support a higher rent
Give the appraiser recent leases and rent comps for similar units. A small rise per unit can close the gap.
Put more down
A smaller loan lowers principal and interest and the monthly mortgage insurance, which can tip the test.
Negotiate the price
A lower price shrinks the loan. Use the failed test as a concrete reason in the negotiation.
Duplexes don’t take this test. It applies only to three and four unit properties. Source: HUD Handbook 4000.1 for the rule and Mortgagee Letter 2023-05 for annual mortgage insurance rates.
FHA self-sufficiency questions, answered
Still unsure how a lender will see your deal? Ask Lowi AI for a scenario review.
Other investor calculators
Long-Term Rental
Hold-for-income math: true monthly cash flow, cap rate, and cash-on-cash.
BRRRR
Recycle your capital: what the refi returns and what it pays you after.
Fix & Flip
Net profit after loan, holding, and selling costs, plus your break-even sale.
Short-Term Rental
Airbnb and VRBO math with fees, turnovers, and break-even occupancy.
Live in one unit. Let the others help pay.
Lowi AI can check FHA, conventional, and DSCR options for a 2 to 4 unit home. No credit check to start.
These results are estimates for educational purposes only. They are not financial, investment, tax, or legal advice, and they are not a credit decision, loan approval, or commitment to lend. Verify every figure, including rents, taxes, insurance, and rehab costs, before making a decision. Kwalifai is a technology platform. Mortgage services are provided by a licensed loan originator (NMLS #2528067), licensed in Texas, enrolled with Ensure Home Loans LLC (NMLS #1666674).