Free HMO Profit & Yield Calculator: Results in Seconds
Calculate your HMO investment returns (and real costs) instantly with our free, comprehensive house of multiple occupation yield calculator. Whether you're evaluating a new HMO purchase or analysing the performance of an existing property, our calculator provides accurate gross yields, net yields, and monthly cash flow projections in seconds.
Data updated: June 2025.
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by Robert Jones, Founder of Property Investments UK
With two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
HMO Yield Calculator
Income Breakdown (Monthly)
Cost Breakdown (Monthly)
Net Cash Flow (Monthly)
Investment Summary
Frequently Asked Questions - HMO Costs & Returns
What Our HMO Calculator Does
Our HMO yield calculator is specifically designed for property investors who need quick, accurate, detailed analysis of multi-tenant rental properties. Unlike basic rental calculators, this tool accounts for the unique complexities of HMO investments, including room-by-room rental income, occupancy rate variations, and the higher operational costs associated with managing multiple tenants.
The calculator processes two distinct scenarios:
New HMO Investment Analysis - For investors considering HMO purchases (both professional HMO investments and Student HMO investments, including all acquisition costs, refurbishment expenses, and setup costs to determine total investment requirements and projected returns.
Existing HMO Performance - For current HMO owners who want to analyse their property's yield based on current market value and operational performance.
What constitutes a good HMO rental yield?
Gross yields of 8-12% represent a good yield, depending on the location, with net yields typically 3-6% lower after operating expenses. Regional variations are significant - Northern England markets like Newcastle often achieve 10-15% gross yields, while higher value Southern locations like Cambridge may only deliver 6-8% gross yields but with higher absolute rental income in £. Yields above 12% generally indicate excellent opportunities or higher-risk investments requiring careful analysis. A high yield that looks unusual could indicate a red flag like unrealistic rents.
What should I budget for HMO management fees?
Management fees for HMO properties typically range from 10-15% of gross rental income. These are higher than standard btl costs, due to increased complexity. Self-managed properties can reduce this cost but require significant time investment aswell as experience in compliance and how to manage multi-tenants. A budget of 12% for professional management is a fair starting point.
How much should I expect to spend on utilities for an HMO?
Budget approximately £50 per bedroom per month for combined HMO gas and electricity costs, plus £10 per month per bedroom for water services. A 6-bedroom HMO typically costs £360+ monthly for utilities. Plus, anywhere from £40-80 a month for a high-quality broadband.
Utility bills are a cost that landlords often pay for in a HMO, unlike a vanilla buy-to-let. They also run much higher in HMOs due to multiple tenants and continuous occupancy.
What occupancy rate should I assume for HMO calculations?
Most HMO investors use 85-95% occupancy rates. 90% represents a realistic assumption for well-managed properties in good locations. Student properties may experience seasonal variations with a summer month being vacant in some smaller university towns, whereas major locations typically charge for the whole 12 months regardless of if the tenants are in situ, made possible due to the higher competition for rooms from tenants.
What are typical HMO insurance costs?
HMO insurance costs start around £300-500 annually for basic coverage of a 6-bedroom HMO, with costs increasing by approximately £50-100 per additional bedroom. Specialist HMO insurance is essential as standard landlord policies exclude multi-tenant properties.
What cleaning costs should I include in HMO calculations?
Professional cleaning of communal areas costs £45-60 weekly (£180-240 monthly) for weekly service, essential for tenant satisfaction and retention. This is likely £15-£20 per hour with 3 hours per week helping keep a HMO in good condition.
How do I work out the stamp duty for my HMO?
As you can see, the costs for a HMO are significant and Stamp duty is no exception.
Landlords (especially overseas investors) have to pay a premium when purchasing properties to rent out (compared to a local homeowner), so when purchasing an existing HMO property, or buying a residential property with the intention to gain planning permission and convert to a new house of multiple occupation you need to budget for this extra expenditure.
As there are so many variables we have created a stamp duty calculator for each country so you can easily see what the updated rates are for you based on your unique purchase price and the property location:
For those investors buying a property, don't forget to check if it is in an Article 4 area and if it has the right permissions and planning to operate as a C4 class or Sui Generis class HMO property.