House Hacking in Fort Worth: How It Works

The short answer: house hacking means living in part of a property and renting out the rest, so tenants help cover your housing cost. In Fort Worth, the usual versions are buying a duplex or small multi-family and living in one unit, or buying a house with a legal accessory unit. The strategy can lower your monthly cost, but it only works if the property is zoned for it, you can finance it and you are comfortable being a landlord.

This is general information, not investment, tax or legal advice. Confirm details with your lender, the City of Fort Worth and an attorney.

How house hacking usually works

  • Multi-unit. Buy a duplex, triplex or fourplex, live in one unit and rent the others. See the duplexes and multi-family page.

  • House with an accessory unit. Buy a home with a legal accessory dwelling unit or garage apartment and rent that space. Confirm that the unit is legal and permitted.

  • Roommates. Buy a larger home and rent rooms. Check zoning and any HOA or city occupancy rules first.

Financing basics

According to Rocket Mortgage's explainer on FHA multifamily loans, FHA financing covers one to four units and requires that at least one borrower occupy the property within 60 days of closing and stay at least one year. It lists a 3.5 percent minimum down payment for borrowers with a credit score of 580 or higher, and says projected rent from the units you will not occupy can count toward qualifying income. For three- and four-unit properties, it says the net estimated rent must pass a self-sufficiency test. FHA is only one option, and lenders differ, so talk to a lender about your specific situation before you make offers.

Check zoning and permits

Zoning controls how many units a lot can hold. The City of Fort Worth's Two-Family ("B") District provides a zone for up to two dwelling units on a lot, and the city's zoning code addresses accessory dwelling units in residential districts with conditions. Confirm the zoning and any rules for the exact address with the city. If you plan to add or convert a unit, the city lists additions, remodels and accessory structures among the residential work that requires permits.

Fort Worth rental rules to know

The City of Fort Worth says registration is voluntary for one- and two-family rentals with no violations and mandatory for those with fire safety or public health violations. Multi-unit complexes require annual registration, and the city's multifamily program applies to three or more units. If you plan to rent by the night, the city has a separate short-term rental ordinance with registration and hotel occupancy tax requirements. Confirm current rules with the city.

Do the math for your situation

  • Your total monthly payment, including taxes, insurance and any HOA.

  • Expected rent from the rented space, and how you estimated it.

  • Vacancy and turnover costs.

  • Repairs and shared systems.

  • Utilities, and whether they are shared.

  • The cost of hiring a property manager, if you would rather not manage tenants yourself.

The how much house can I afford page covers the piece of the math that is your own housing payment.

My take: house hacking works best when you would be happy living in the property even if the rental income came in lower than planned. Buy the home you can live with, not just the spreadsheet you like.

Being a landlord next door

Living next to your tenants is different from owning a rental across town. Think about privacy, noise, repairs and how you will handle a late rent conversation with someone you see every day. According to the Texas State Law Library, landlords must refund a security deposit within 30 days after a tenant vacates. Talk to an attorney or an experienced property manager about leases and your obligations.

House hacking FAQ

Can I house hack with an FHA loan?

According to Rocket Mortgage's explainer, FHA financing covers one to four units and requires at least one borrower to occupy the property. Ask a lender whether you qualify.

Do I have to live in the property?

For owner-occupant financing, yes. Rocket Mortgage says at least one FHA borrower must occupy within 60 days of closing and stay at least one year. Ask your lender about the requirements for the loan you choose.

Is house hacking legal everywhere in Fort Worth?

No. Zoning, permits and HOA rules vary by property. Confirm what is allowed at the exact address before you make an offer.

Is house hacking a good first investment?

It can be, because you live there and may qualify for owner-occupant financing. Whether it is right for you depends on your budget, your tolerance for being a landlord and the property.

Want to talk through house hacking?

If you are curious whether house hacking could work for you, tell me what you are thinking and we can start with the numbers and the property type. See also the Fort Worth investment guide and the investment property search page.

Sources: Rocket Mortgage on FHA multifamily loans, City of Fort Worth zoning code, City of Fort Worth rental registration, City of Fort Worth residential permits, Texas State Law Library. This is general information, not investment, tax or legal advice.