HMO Income Calculator
Room-by-room income, bills, licensing and net profit on a house in multiple occupation.
Gross monthly income (full house)
£2,750
Expected monthly income
£2,530
Monthly outgoings
£2,079
Net monthly profit
£451
Net annual profit
£5,417
Income per room per month (net)
£90.28
What this calculator tells you
HMOs produce far more rent per property than single lets and far more cost per property too. Bills, licensing, fire safety compliance, higher management fees, more wear and more frequent voids all bite into the headline room income. Modelled honestly, a good HMO still outperforms a single let — but the gap is narrower than room rents suggest.
How it works
- 1Gross income = rooms × average room rent.
- 2Apply an occupancy percentage; a five-bed with one room empty is at 80%.
- 3Deduct all-inclusive bills, management, cleaning and maintenance.
- 4Amortise the HMO licence fee and additional fire-safety compliance across the year.
- 5Deduct the mortgage to reach the cash actually left each month.
Worked example
A five-bed HMO at £550 per room
- Gross: 5 × £550 = £2,750 a month.
- At 92% occupancy: £2,530.
- Bills £550, management at 12% £304, maintenance £250, licence £75, mortgage £900 = £2,079.
- Net: £451 a month.
£451 a month, or £5,412 a year — roughly double a comparable single let, in exchange for considerably more management and a licensing regime to satisfy.
Frequently asked questions
When does a property need an HMO licence?
Mandatory licensing applies to any HMO occupied by five or more people forming two or more households, anywhere in England and Wales. Many councils also operate additional licensing covering smaller HMOs, and selective licensing covering all rentals in a designated area — always check the local scheme.
What extra safety rules apply to HMOs?
Typically a grade D interlinked fire alarm system, fire doors, emergency lighting on escape routes, an annual fire risk assessment, a five-yearly electrical installation condition report, annual gas safety check, and minimum room sizes and amenity standards set by the licence conditions.
Related content
These calculators give general estimates for UK private landlords and letting agents, not legal, tax or financial advice. Figures depend on your circumstances and on the rules in your part of the UK — check the detail or take advice before acting.