Short answer
Not as a nightly or weekly rental. When you buy a 2 to 4 unit home, or a one-unit home with an accessory dwelling unit, with an FHA loan, HUD requires you to sign form HUD-92561. In it you agree the property won't be used for hotel or transient purposes or rented for periods of less than 30 days. Renting the other units to long-term tenants is allowed, and that rent can even help you qualify.
What does HUD's rule say?
HUD's Handbook 4000.1 says the lender must get the borrower's agreement that the property won't be used for hotel or transient purposes, or otherwise rented for periods of less than 30 days. The lender collects form HUD-92561, the Borrower's Contract with Respect to Hotel and Transient Use of Property, for loans on:
- a one-unit home with an accessory dwelling unit (ADU);
- a two- to four-unit home; or
- a single-family home that's one of five or more homes the borrower owns within a two-block radius.
FHA also won't insure loans on bed and breakfasts, boarding houses, tourist houses or other transient housing.
What about the unit I live in?
FHA loans are for your principal residence. At least one borrower must move in within 60 days of closing and plan to live there for at least a year. See HUD's occupancy rules and exceptions.
Can long-term rent from the other units help?
Yes. FHA can count rent from the other units in a 2 to 4 unit home, and from an ADU on a one-unit home, as income. For an ADU, HUD tells appraisers not to base the market rent on homes rented for less than 30 days. See buying a 2 to 4 unit home to live in and the ADU guide. For three- and four-unit homes, the building also has to pass FHA's self-sufficiency test.
What if I want a short-term rental?
Short-term rentals are usually financed as a second home or an investment property instead, with their own rules. New Hampshire also requires a meals and rooms license for short-term rentals, and towns and associations may have their own rules. See financing a short-term rental in NH.
Sources
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.