Can I buy a multifamily property with an FHA loan in Wisconsin?
Rob Miller explains how Wisconsin buyers can use an FHA loan to purchase a 2-4 unit property, live in one unit, and use rental income to qualify.
Rob Miller, Branch Manager at MadCity Home Loans, explains one of the best wealth-building strategies available to Wisconsin first-time buyers.
Can I buy a multifamily property with an FHA loan in Wisconsin?
Yes — and this is one of the most powerful wealth-building moves available in Wisconsin right now. FHA allows you to purchase a 1–4 unit property with just 3.5% down, as long as you occupy one of the units as your primary residence.
How It Works (House Hacking)
You buy a duplex, triplex, or fourplex. You live in one unit. You rent out the other units. The rental income from the other units can be used to offset your mortgage payment — and in many cases nearly covers it entirely. You're building equity and getting your housing paid for by tenants.
How We Count the Rental Income
FHA allows us to count 75% of the projected market rent from the non-owner units toward your qualifying income. We use a professional rent schedule (from the appraiser) to establish the market rent figure. This can dramatically increase how much home you qualify for.
Property Requirements
- Must be 1–4 units (no more than 4)
- You must occupy one unit as your primary residence for at least one year
- Property must meet FHA minimum property standards (HUD requires livable conditions in all units)
- All units must be legal and permitted (no unpermitted conversions)
Madison Market Reality
Duplexes in the Madison area — particularly near UW campus, Willy Street, and the near east side — command strong rents. I've helped buyers purchase duplexes where their net monthly housing cost was under $500/month after rental income. It's real, and it works.
Related Guide: Learn more about FHA loan qualifications in our FHA Credit Score Requirements Guide.