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HMO Rental Yield Calculator

Calculate potential rental yield for your HMO property.

Modern HMO Property
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  1. Enter property purchase price and additional costs
  2. Input expected monthly rental income
  3. Add total annual running costs
  4. Review gross and net yield calculations
How We Calculate Rental Yield
Methodology & Data SourcesUpdated October 2025

Calculation Formulas

Gross Rental Yield
(Annual Rent ÷ Total Property Cost) × 100

Basic yield calculation before expenses

Net Rental Yield
((Annual Rent - Annual Costs) ÷ Total Property Cost) × 100

Realistic yield after all expenses

Data Sources

UK Finance mortgage rate data (October 2025)
HMO rental yield benchmarks from our lender panel
Property market data from Rightmove and Zoopla
Tax rates from HMRC guidelines

Key Assumptions

Mortgage Interest Rate6.5%

Current average HMO mortgage rate

Property Management Fee10%

Standard HMO management fee

Void Period2 weeks/year

Conservative estimate for HMO properties

Maintenance Reserve£1,500/year

Annual maintenance and repairs budget

Calculation Accuracy

Calculations based on current market data and conservative assumptions. Results may vary based on actual property performance and market conditions.