HMO Calculator
Model HMO returns on a per-room basis, including the higher cost base.
Introduction
Who this is for: Investors assessing houses in multiple occupation.
Why it matters: HMOs produce far higher gross yields than single lets, but the cost base is much heavier — bills are usually inclusive, voids are per-room rather than whole-property, and management is intensive. The gross-to-net gap is where HMO returns are won or lost.
Typical scenario: A six-bed HMO at £550 per room per month, with all bills included.
- Applying single-let cost assumptions to an HMO — utilities alone can be 15-20% of rent.
- Assuming full occupancy; per-room voids mean 90% is a realistic ceiling.
- Overlooking licensing costs and Article 4 restrictions on conversion.
Inputs
Property
rooms
Income
Running Costs
Analysis
6 rooms at £550 and 90% occupancy produce £2,970 gross monthly. After £1,436 of costs (48% of rent), net income is £1,534 a month — a net yield of 5.04% against gross of 10.85%.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Sensitivity
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Live Results
Net Yield
5.04%
Gross Yield
10.85%
Monthly Net Income
£1,534
Annual Net Income
£18,403