With elevated home prices and mortgage rates, many buyers are turning to house hacking as a strategy for affordable homeownership. House hacking involves purchasing a small multifamily property, living in one unit, and renting out the others. This approach can help offset monthly mortgage payments, making homeownership more manageable.

How House Hacking Works

House hacking is made possible by Federal Housing Administration (FHA) loan financing, which requires owner occupancy. This means the buyer must live in one of the units as their primary residence. FHA loans can be obtained with as little as 3.5% down, although some lenders may apply additional requirements.

The cities where house hacking is most accessible have been ranked based on median list prices for active multifamily listings. Nine of the top 10 cities are located in the Midwest or South, where multifamily housing stock is plentiful and affordable. Cities like Detroit, Lansing, and Dayton have strong multifamily housing stock due to their history as manufacturing hubs.

Top Cities for House Hacking

Southern cities like Shreveport, Louisiana; Montgomery, Alabama; and Jackson, Mississippi, offer low entry points for house hacking. Shreveport has a median list price of $115,000, which translates to an estimated down payment of roughly $4,000. Rochester, New York, is the only Northeastern city to crack the top 10, with 66 active multifamily listings and a median price of $154,950.

Original reporting: KRDO (Colorado Springs metro) — read the source article.