Small rooming house with several rooms

Local workers, students, traveling healthcare staff and people looking for lower-cost housing without a full lease on an apartment.

Monthly rent per room, often with utilities and Wi-Fi included, so more occupied rooms means more income against the house's fixed costs.

• Managing people and house rules
• Basic budgeting and bookkeeping
• Handling repairs or organizing contractors

• Zoning and occupancy limits, and whether a rooming house license, fire inspection or certificate of occupancy is required locally
• If you lease the house, check that the owner allows subletting rooms in writing
• Landlord-tenant and eviction rules for rooms differ by state, check before taking lodgers
• Fair housing laws apply to advertising and screening
• Insurance suited to a multi-room rental, not just a standard home policy
• Vacancies and repair costs can strain cash flow, keep a reserve

Startup costs are typically around $8,000 to $40,000, depending on the house, furnishing and setup needs. Vacancies and repair costs can strain cash flow, so it is wise to keep a reserve.

Monthly revenue is typically estimated around $3,000 to $12,000, depending on the number of rooms, your rents and how often rooms are filled. Repair costs and vacancies can reduce what you keep.

Check zoning and occupancy limits, and whether a rooming house license, fire inspection or certificate of occupancy is required locally. If you lease, get the owner's written permission to sublet rooms, and check landlord-tenant and fair housing rules.