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House hacking — buying a 2-4 unit property with an FHA loan, living in one unit, and renting out the rest — is one of the most accessible ways to get into real estate with as little as 3.5% down. This tool walks the whole picture: your FHA loan limit by unit count, your all-in monthly payment including mortgage insurance, and what you actually pay out of pocket once rental income is factored in. Enter your numbers above.
How this calculator works
Pick how many units the property has (a single-family home counts as one unit if you are renting out a room or accessory unit instead), and enter your purchase price, financing terms, and expected rental income from the unit(s) you are not living in. The tool calculates your full monthly housing payment — principal, interest, FHA mortgage insurance, taxes, insurance, and HOA — then nets out the rental income you will collect to show your real out-of-pocket cost.
2026 FHA loan limits for Jefferson County, KY
Jefferson County is a standard-limit county (no Kentucky county is designated high-cost), so these are the 2026 FHA loan limits by unit count:
- 1 unit: $541,287
- 2 units: $693,050
- 3 units: $837,700
- 4 units: $1,041,125
If your purchase price is above the limit for your unit count, you will need a larger down payment to bring the loan amount under the limit, or a different loan program.
FHA mortgage insurance (MIP), included in this estimate
FHA loans require mortgage insurance regardless of down payment size. This calculator includes both pieces using 2026 rates:
- Upfront MIP: 1.75% of the loan amount, financed into the loan (added to your loan balance, not paid in cash at closing).
- Annual MIP: for a 30-year loan with less than 10% down, 0.55% per year on loan amounts up to $726,200, or 0.75% per year above that — charged for the life of the loan at that down payment level. With at least 10% down, the rate drops to 0.50% (up to $726,200) or 0.70% (above), and cancels after 11 years instead of running for the life of the loan.
The owner-occupancy rule
FHA house hacking comes with a catch: you must move into one of the units within 60 days of closing and live there as your primary residence for at least one year. After that year, you are free to move out and rent every unit, refinance, or buy your next house hack. Minimum down payment is 3.5% with a credit score of 580 or higher (most lenders want 620+ in practice); with a score of 500–579, FHA requires at least 10% down.
Frequently asked questions
Can I house hack a single-family home?
Yes — select "1 unit" and enter the rent you expect from a room, basement apartment, or accessory dwelling unit in the "rental income" field. The FHA loan limit and MIP math work the same way; you just will not have the two-to-four-unit rental income of a duplex, triplex, or fourplex.
Does a lender count the rental income when qualifying me for the loan?
Often yes — FHA guidelines generally let you count a portion of the market rent from the other units (typically 75%, to account for vacancy) toward your qualifying income, which can make a bigger property more affordable to qualify for than the sticker price suggests. This tool does not model loan qualification, only your actual cash flow once you own the property — talk to a lender about how much rental income you can use to qualify.
Can I ever get rid of the mortgage insurance?
With less than 10% down (the typical 3.5% house-hack scenario), FHA annual MIP runs for the life of the loan — the only way off it is to refinance into a conventional loan once you have enough equity, typically 20%. With 10% or more down, MIP cancels automatically after 11 years.
Thinking about your first house hack in Jefferson County? Get in touch and we will help you find a property that actually pencils. Licensed in Kentucky and Indiana. Every listing goes live on MLS within 3 business days of signing.