HMO Rental Yield Calculator

Calculate potential rental yield for your HMO property.

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How We Calculate Rental Yield

Methodology & Data SourcesUpdated March 2026

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

UK Finance mortgage rate data (March 2026)

HMO rental yield benchmarks from our lender panel

Property market data from Rightmove and Zoopla

Tax rates from HMRC guidelines

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.

This calculator is a planning tool. For current rates, lender criteria, and specialist advice:

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