Buying a duplex: rent, shared costs and owner occupancy
A duplex contains two separate homes in one property. You can rent both, or live in one and rent the other. Start by separating rent for each unit from costs paid for the whole building.
Use the house hacking calculator to estimate your housing cost while living in one unit, then compare it with renting out both.
Build the budget one unit at a time
Estimate market rent for each unit based on its size, condition, parking and utilities. Estimate each unit separately. Include a vacancy allowance and check whether the current lease, rather than a new listing’s asking rent, determines income at purchase.
Identify separately metered utilities and the bills the owner pays. Then obtain estimates for taxes, insurance, repairs and financing on the whole property. Shared walls or a roof can lower some costs per unit; separate systems may need separate maintenance.
What shared costs can mean
Some work can serve both homes, such as exterior painting or a roof replacement. Other costs can occur twice, such as servicing separate heating systems. A building-wide problem can also affect both tenants. List the shared and separate systems, their condition and expected repair costs.
Use the replacement reserve tool for shared and unit-specific components. A maintenance budget covers recurring work separately.
If you live in one unit
The rented unit’s income can offset part of your housing cost. The unit you occupy does not produce cash rent, so do not count an assumed market rent from it as money collected. The house hacking tool shows the owner-occupied case and the all-rented case separately.
Financing, insurance and taxes can depend on occupancy and the property. Get actual terms for the intended use. This site’s housing-cost estimate does not determine loan eligibility or allocate personal and rental tax expenses.
Questions for the property review
- Are both units permitted for the intended use?
- Which systems, entrances, meters and outdoor spaces are shared?
- What are the existing rents, lease terms and owner-paid utilities?
- What near-term repair or replacement work affects either unit?
- Does the remaining budget work if one unit stops producing rent?
Compare the duplex with actual alternatives using their own price, rent and expenses. The number of units alone does not determine the return.