Departing Residence Rental Income

Separate category

Fannie Mae's current Selling Guide has a dedicated departing-residence rental-income section.

Lease limitation

Fannie's September 2026 general rental guidance says a lease agreement is not permitted to determine qualifying rental income when the investment property is a departing residence.

Housing history matters

Rental-income eligibility and treatment can depend on current housing payment and property-management experience.

Do not use an old shortcut

Use the current agency scenario rather than a remembered universal percentage or equity rule.

Stop using old departing-residence shortcuts

Fannie created a dedicated departing-residence rental category in the September 2026 Guide. Use current documentation and income-treatment rules, then separately analyze property count and reserves.

Documents I would gather before calculating rental income

Current mortgage statements/PITIA for every retained property; Schedule E and applicable tax returns; leases; purchase closing statements and acquisition dates; appraisals or rent schedules when applicable; proof of current housing payments; insurance/HOA information; entity documents if an LLC is involved; and evidence of reserves. The correct calculation depends on what the property is and when/how it was acquired.

Common investor-loan mistakes

Calling 75% of rent 'income' without subtracting PITIA; using a lease when current agency policy requires another rent source; adding positive rental income when it is only allowed to offset housing expense; confusing cap rate with DSCR; applying a private investor's seasoning rule to Fannie/Freddie; and assuming an LLC-owned mortgage is counted the same as a personally obligated mortgage.

Primary sources to verify

• Fannie Mae — General Rental Income
• Fannie Mae — Investment Property Purchased Within 45 Days
• Fannie Mae — Multiple Financed Properties
• Freddie Mac — Investment Property Mortgages

Last reviewed September 15, 2026.