House hacking after divorce in Colorado: duplex, roommate or ADU

How does house hacking work on one income after divorce?

You buy a home with a second unit, a spare room or a basement suite. You live there and someone else pays rent. The rent lowers your monthly cost and, on a duplex, raises the loan you qualify for. Read the house hacking guide and the duplex and multifamily buying guide for the full steps. If you have not yet set your budget, start with living on one income and buying on one income in Denver.

What does a $600,000 duplex cost per month?

The example uses FHA with 3.5 percent down, $21,000, and the 1.75 percent FHA upfront premium added to the loan, for a loan of about $589,100. It uses a 6.5 percent example rate. Every $100,000 borrowed at 6.5 percent is about $632 a month in principal and interest.

How does a lender count the rent?

For a 2 to 4 unit home you live in, FHA lenders count 75 percent of the appraiser's market rent for the units you do not occupy. On $2,400 of rent that is $1,800, which brings the payment the lender tests to $2,714. Conventional lenders follow their own percentage of the appraised rent, and your lender confirms the exact figure. You must live in the property as your main home, and FHA requires you to occupy it for at least 1 year. FHA and VA home buying covers the loan types, and VA offers zero down on a duplex when you have entitlement.

Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003, Equal Housing Lender, runs duplex numbers on his lender page. You are free to use any lender. The same qualification rules for support income apply, so read the qualification page and the mortgage after divorce page.

Does a roommate count as income?

A tenant you already have counts on a lease. A future roommate does not count for qualification. Fannie Mae counts boarder income when you show 12 months of history of the person sharing your home, so plan to afford the payment without it. The room rent still cuts your real cost: a $900 room takes a $3,500 payment to $2,600. Screen every applicant with the same written criteria, and sign a lease.

Can you build or rent an ADU?

An ADU is a second small home on your lot, a garage or basement suite, or a backyard cottage. Denver and other Front Range cities allow ADUs on many residential lots, and each city sets its own size, parking and owner-occupancy rules. Call the city zoning office with the exact address before you offer. On a conventional loan, Fannie Mae counts ADU rent when there is a lease and an appraiser confirms the unit; your lender confirms how much of it counts. Search Denver, Aurora, Lakewood and Fort Collins for homes with a second unit, or browse every home for sale in Colorado.

What license and landlord duties come with renting?

• Denver licensing. Denver requires a license for residential rentals. Short-term rentals need a license and must be your primary residence. Confirm which one applies to your unit with the City of Denver before you advertise.
• Habitability. Colorado's warranty of habitability applies to every unit you rent, and repairs are your job on the tenant's notice.
• Deposits and leases. Use a written lease, hold the deposit as Colorado law requires and return it on time.
• Insurance. Buy a landlord policy for the rented unit.
• Taxes. Rent is taxable income, and depreciation and expenses reduce it. Ask a CPA.

What if the other unit sits empty?

Budget one empty month a year, $2,400 in the example, plus 1 percent of the price, $6,000, for repairs. Keep 6 months of full payments in cash after closing: $27,084 at $4,514. If you cannot carry the full payment for 3 months, buy a smaller duplex.

Where does the down payment come from?

3.5 percent of $600,000 is $21,000, plus closing costs. Your equity buyout or settlement funds it. The buyout calculator shows the cash the marital house releases, and the closing costs page lists the rest. If your kids stay with you part of the week, the second bedroom and the shared yard matter as much as the rent, so read the two homes page before you pick a floor plan.

Where to go next

• Buying after divorce in Colorado
• House hacking in Colorado
• Duplex and multifamily buying guide
• Rent or buy after divorce in Colorado
• How we sell a divorce home
• Free buying after divorce guide

Talk to us before you sign anything

The Kenna Group, with Damon L. Chavez, Certified Residential Appraiser, and Brian Lee Burke, Colorado broker since 2003, will price the marital home in a written Smart Pricing Report if it is still unsold, check your payment and rental income with the lender and set up a duplex or ADU search on kennarealestate.com. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Free and confidential. You do not need to be ready to buy.

Quick answers

Plain-language education from a Colorado real estate group, not legal, tax or financial advice. Numbers are as of September 2026. Disclaimer.