FHA 3–4 unit screening

FHA self-sufficiency screening calculator

Use appraiser-supported market rents for all units and compare net self-sufficiency rental income with projected monthly PITI. For a quick screen, the calculator defaults to 75% of total fair-market rent; actual FHA underwriting uses the greater of the appraiser's vacancy/maintenance estimate or 25% of fair-market rent.

Unit 1 market rent

Unit 2 market rent

Unit 3 market rent

Unit 4 market rent (0 for triplex)

Rental income factor (%)

Projected monthly PITI

Enter your figures and calculate.

Use this only as an early screen. Actual FHA underwriting depends on HUD Handbook 4000.1, the appraisal and the lender's worksheet. Confirm the vacancy/maintenance deduction and exact PITI used in the transaction.

What the test is trying to answer

For applicable three- and four-unit FHA transactions, the property must generate enough net self-sufficiency rental income to cover the projected housing payment under FHA's rules. The calculation relies on documented market rents rather than a seller's optimistic rent estimate.

Official reference: HUD Single Family Housing Policy Handbook 4000.1. Always use the current version at HUD.gov.