FHA Self-Sufficiency Calculator | 3-4 unit properties

Buying a 3–4 unit property with an FHA loan can be a smart way to build wealth.  But FHA adds one extra rule: the property must pay for itself.

That rule is called the self-sufficiency test.

In this guide, you’ll learn how the FHA self-sufficiency test works, how lenders calculate it, and how to spot issues before you make an offer.

You can also run the numbers using our FHA Self-Sufficiency Calculator to test real scenarios.

What is the self-sufficiency test for FHA loans?

The FHA self-sufficiency test requires that rental income from a 3–4-unit property cover the full monthly housing payment. 

In simple terms, the property must have positive cash flow on paper.

To pass the test, net rental income must be at least equal to PITI.

Here’s how FHA defines the key terms:

• Gross rental income: Total monthly rent from all units, including the unit you will live in
• Net rental income: 75% of gross rental income
• PITI: Principal, interest, property taxes, homeowner's insurance, FHA mortgage insurance, and HOA dues if applicable

Schedule a 15-minute call with NewCastle Home Loans. Get answers upfront on whether a 3–4 unit property will actually work with FHA financing.

How do lenders calculate FHA net self-sufficiency rental income?

Lenders use the Net Self-Sufficiency Rental Income (NSSRI) formula to evaluate FHA 3–4 unit properties.

Here’s the process:

1. Calculate PITI
   This includes the full monthly housing payment
   
   
2. Calculate net rental income
   Use the appraiser’s opinion of market rent for all units
   Subtract 25% or the appraiser’s vacancy factor, whichever is greater
   
   
3. Apply the test
   Net rental income ÷ PITI must be 100% or higher

FHA self-sufficiency calculator

Use our FHA Self-Sufficiency Calculator to see if a property passes before you make an offer.

Clear

Purchase Price:

Down payment:

%

Interest Rate:

%

Total Rental Income from all units, including the one you occupy:

Edit taxes and Insurance:

Monthly Property Taxes:

Monthly Homeowners Insurance:

Total Loan Amount: 

• +  (Base Loan Amount)
• +  (UFMIP)

 

Total Monthly Payment: 

• +  (Principal & Interest)
• +  (Mortgage Insurance)
• +  (Property Tax)
• +  (Homeowner's Insurance)

 

Is the property self-sufficient?

•  (Net Rental Income)
•  (Ratio)

You can also view:

• Current FHA interest rates
• Monthly payments
• Estimated closing costs

Know the numbers early so you can move fast when the right deal appears.

How can I determine whether a 3–4-unit property is self-sufficient before making an offer? 

You can estimate self-sufficiency before making an offer, but you need the right team.

Start with a verified mortgage pre-approval, not a quick online pre-qual.  Verified approvals mean an underwriter reviews your credit and income upfront.

At NewCastle Home Loans, an underwriter signs off early. That gives you confidence and leverage when shopping for multi-unit properties.

Next, work with a strong buyer’s agent. A good agent researches comparable rental properties and helps you accurately estimate market rent.

Once you identify a property, your lender can:

• Calculate PITI

• Apply the FHA rental rules

• Test self-sufficiency before you commit

What are my options if a property fails FHA’s self-sufficiency test?

If a property fails the test, you still have options.

1. Look for another property
   Some deals simply do not work under FHA rules.
   
   
2. Use a different loan program
   Conventional loans do not require a self-sufficiency test, but they often need higher down payments.
   
   
3. Increase rental income
   If the appraisal missed stronger comparable rents, your lender can review the supporting data and appeal the rent schedule.
   
   
4. Reduce PITI
   Lower the loan amount
   Shop for cheaper insurance
   Buy down the interest rate with discount points

If cash is tight, ask for a seller credit. FHA allows seller credits up to 6% of the purchase price, which can cover discount points and closing costs.

The right structure can turn a “no” into an approval.

At NewCastle Home Loans, a loan officer runs the FHA self-sufficiency test early, using real rates, taxes, insurance, and appraiser-based rent rules. That means:

• You know before making an offer if the property will pass
• You avoid wasting time and money on deals that the FHA will not approve
• You can structure the offer correctly the first time

In short, you get clarity early, fewer surprises, and a stronger path to closing.

More information about multi-unit properties,  FHA loans, and the self-sufficiency test:

• How to buy a 2-to-4-unit property
• Mortgage loan limits for 2026
• FHA loan
• FHA Net Self-Sufficiency Rental Income rule