Boost Your Buying Power with ADU Rental Income: What Hawai‘i Homebuyers Need to Know
- Nichole Ehrbar
- Oct 24
- 2 min read
There’s exciting news in the real estate world — and it’s especially good for Hawai‘i homebuyers. Fannie Mae now allows borrowers to include rental income from an Accessory Dwelling Unit (ADU) when calculating qualifying income.
That means if you’re looking to purchase a home with an ohana unit, guest cottage, or studio space that can be rented out, that potential rental income could help you qualify for a larger loan — and maybe even make your dream home more attainable.
What Is an ADU?
An Accessory Dwelling Unit (ADU) is a secondary living space located on the same property as a main home. In Hawai‘i, these are often called ohana units and are incredibly popular for multi-generational living or as income-producing rentals.
An ADU can include:
A detached ohana cottage or guest house
A finished basement or garage conversion
A studio or manufactured home with its own kitchen, bathroom, and living area
As long as the space provides areas for living, sleeping, cooking, and bathing, it may qualify under the new guidelines.
Why This Matters in Hawai‘i
Housing affordability is one of Hawai‘i’s biggest challenges. Allowing rental income from an ADU to count toward your qualifying income is a huge step forward. It gives buyers the flexibility to:
Qualify for a higher loan amount
Purchase a home with income potential
Offset monthly mortgage payments through rental revenue
Invest in multi-generational living while planning for long-term financial stability
This new policy applies to conventional, FHA, and renovation loans, giving you more pathways to homeownership and financial flexibility.
Thinking About Buying a Home with an Ohana or ADU Potential?
Now is the perfect time to explore properties that offer income opportunities or space for extended family. Whether you’re searching for a property with an existing ADU or considering one that can be added later, understanding how rental income affects your buying power is key.
As your local Hawai‘i Realtor®, I can help you:
Identify homes that meet Fannie Mae’s new ADU guidelines
Connect with trusted lenders who understand these updates
Evaluate the income potential of ADU-equipped properties
Strategically position your offer in today’s market
Let’s Find Your Home — and Your Opportunity
This update opens new doors for Hawai‘i buyers ready to make smart moves in today’s market. If you’re curious about how ADU rental income could help you qualify or want to see what’s available, let’s connect!
📞 Nichole Ehrbar, Realtor®
RS-84140 | ABR, GREEN, RSPS, C2EX & Luxury Specialist
C: (808) 238-8336 - Call or text anytime!
ZT Hawaii LLC | 1975 E. Vineyard Street, Suite 401, Wailuku, HI 96793
Helping Hawai‘i families find home — and opportunity — across the islands.
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