◈ GLOSSARY · REAL ESTATE
House Hacking.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
House hacking means buying a small multi-unit property (or a single-family with a rentable basement/ADU), living in one unit, and renting the others to cover most or all of your mortgage. The big advantage: you can use an owner-occupied loan (FHA 3.5% down, conventional 5%) instead of investor-loan terms. The caveat: you're also a live-in landlord, which is a real job.
◈ IN PRACTICE
Example
Buy a $400,000 duplex with 5% down ($20,000) on an owner-occupied conventional loan. PITI is $2,800/month. You live in one unit, rent the other for $1,900. Your effective housing cost: $900/month — likely less than renting a comparable apartment.
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