Keep the Florida House, Rent It, Buy the Next One
Program and regulatory figures verified September 19, 2026. Details change; confirm your scenario with us.
Renting the departing home still removes the timing pressure. What changed on September 2, 2026 is how much it helps you qualify, and the change is not in your favor.
What changed, and when it binds
Fannie Mae restructured its entire rental income policy in Selling Guide Announcement SEL-2026-08, dated September 2, 2026. The announcement describes a new framework for departing residences that relies on market-supported rents, reserve requirements, and PITIA offset limitations rather than lease agreements.
The effective language is specific: lenders are encouraged to implement the changes immediately but must do so for all loans with application dates on and after November 1, 2026. So depending on your lender and your application date, either framework may apply to a file taken today.
The content that used to sit at B3-3.1-08 now lives at B3-3.8-01 through B3-3.8-05. Departing residences are B3-3.8-05. If you are reading advice that cites the old section number, it predates this change.
The calculation, and the part that surprises people
Take the gross monthly market rent and multiply by 75%. The remaining 25% is absorbed by vacancy and maintenance. From that net figure, subtract the property's full PITIA. What is left is the adjusted monthly net rental income.
Here is the part that changes plans. If that number is positive, it offsets the departing residence's own housing payment and nothing else. It does not become income that helps you qualify for the new house. If it is negative, the shortfall is added to your debt ratio as a liability.
A great many pages about buying before selling still describe renting the old home as a way to increase borrowing power. Under B3-3.8-05 the best case is that the old house stops counting against you. That is worth a lot. It is not the same claim.
The lease workaround is closed
The guide states plainly that lease agreements are not permitted for any departing residence. Signing a quick lease, including one with a family member, no longer establishes the rent.
What does establish it: a complete appraisal report that includes market rents, a Single-Family Comparable Rent Schedule on Form 1007 for the occupied unit, or a market analysis tool supported by at least three comparable rental properties. Detail on the Form 1007 page.
Reserves, and the experience test
Six months of PITIA on the vacated property is required where the borrower has less than 12 months of property management experience. Most people converting their own first home to a rental are in exactly that category, so plan on the reserve requirement rather than hoping to be excused from it.
Reserves are a real constraint on a buy-before-you-sell file, because the same liquidity is often earmarked for the new down payment. Finding out about it late is what turns a workable plan into a scramble.
Florida's own landlord rules
Two Florida facts matter to this decision, and both are friendlier than what owners face in a lot of states.
First, notice. A Florida tenancy without a specific term ends on not less than 30 days notice before the end of a monthly period. That was 15 days until Chapter 2023-314 raised it. If you plan to sell the house later, 30 days is the planning horizon for getting it empty.
Second, rent regulation. Section 125.0103 bars any county or municipality from imposing controls on rents, and the Live Local Act removed the old housing-emergency exception effective July 1, 2023. There is no Florida jurisdiction where a local rent cap limits what you may charge, which is a meaningful difference from California or Oregon.
Landlord-tenant compliance is legal work and belongs with a Florida attorney. We raise these because they set the rent and the timeline we underwrite.
When this structure actually wins
It wins when the departing home covers its own payment at market rent, when you have the reserves, and when the overlap would otherwise be long or uncertain. In the slower Florida metros, where time to pending runs past 100 days, that combination comes up often.
It loses when the numbers were built on the assumption that rental income adds to qualifying income, which under the current rule it does not.
Compare it against the other two structures on the structures page.
Homestead eligibility, portability claims and landlord notice requirements are legal and tax questions. Your CPA, a Florida attorney, and your county property appraiser own those answers. We flag them because they change the numbers we underwrite.
Frequently asked questions
Can I use a lease to document rent on my departing Florida home?
Not for applications dated on or after November 1, 2026. Fannie Mae B3-3.8-05 states that lease agreements are not permitted for any departing residence. Market rent must be established by a complete appraisal including market rents, a Form 1007 comparable rent schedule for the occupied unit, or a market analysis tool supported by at least three comparable rentals.
How much rental income can I use from my departing residence?
Gross monthly market rent times 75%, less the property's PITIA. If the result is positive it offsets that property's own payment only and does not add to your qualifying income. If it is negative, the shortfall is included in your debt-to-income ratio. That is the rule under Fannie Mae B3-3.8-05.
Do I need reserves to rent out my current home?
Six months of PITIA on the vacated property, where the borrower has less than 12 months of property management experience. A first-time landlord converting their own home will generally fall into that category. Plan the liquidity around it, since the same funds are often needed for the new purchase.
How much notice do I have to give a Florida month-to-month tenant?
Not less than 30 days prior to the end of a monthly period, under Fla. Stat. Sec. 83.57. The requirement was 15 days until Chapter 2023-314 raised it to 30. Specific landlord-tenant questions belong with a Florida attorney.
Does any Florida city have rent control?
No. Fla. Stat. Sec. 125.0103 prohibits counties and municipalities from imposing controls on rents, and the Live Local Act removed the previous housing-emergency exception effective July 1, 2023. No Florida jurisdiction caps residential rent increases.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Homestead eligibility, portability, and landlord-tenant rules change and depend on your facts; your county property appraiser, your CPA or a Florida attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.