House in multiple occupation yield.

HMO (House in Multiple Occupation) yield = total rent across all rooms ÷ property price. HMOs typically yield 8-15% gross vs 4-7% for standard buy-to-let. Higher yield reflects higher management intensity (multiple tenants, more turnover, council licensing requirements) and higher expenses.

250k property, 5 rooms × 130/week × 48 weeks = 31,200 annual rent. Less 6,000 expenses (council licence, repairs, voids, communal cleaning, broadband) = 25,200 net. Gross yield 12.5%, net yield 10.1%. Strong returns - higher than standard BTL but more management work.

HMO regulation: licence required for 5+ tenants, some councils require licence for 3+. Article 4 directions in some areas restrict converting houses to HMOs. Fire safety regulations strict (interconnected smoke alarms, fire doors). Higher mortgage interest rates than standard BTL (typically 0.5-1.5% premium). Despite challenges, yield premium often justifies extra effort for active investors.

Quick example

With property price of 250,000 and rooms let of 5 (plus weekly rent per room of 130 and weeks let annual of 48), the result is 10.08%. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Property Price, Rooms Let, Weekly Rent per Room, Weeks Let Annual, and Annual Expenses. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

What's happening under the hood

Annual rent = rooms × rent × weeks. Net rent = annual - expenses. Net yield = net rent ÷ price × 100. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Where this fits in planning

This is a "what-if" tool, not a forecast. Use it to test ideas before committing: what happens if the rate is 2% lower than hoped, what happens if you add five more years. The value is in the scenarios you run, not the single answer you get from the defaults.

What this doesn't capture

Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.