What Is A Duplex? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
Susan Law Cain/Shutterstock August 30, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. John Stearns, CMC, CRMS is a Senior Mortgage Loan Originator with American Fidelity Mortgage. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. In real estate, a duplex refers to a housing configuration that allows for two separate residential units within one structure. It’s a type of that is kind of a cross between an apartment and a house — generally with more living space than the former, and a little less than the latter. With home prices soaring, the multi-family housing market is exploding. In fact, according to , a record 622,000 building permits for multifamily housing units were granted in the United States in 2021, compared with 492,000 over the previous twelve months. There are both benefits and drawbacks about duplexes to live in or use as an investment, so weighing them is imperative to see if purchasing or occupying one works for you. What is a duplex
A duplex is generally a property divided into two separate living units. Those units can be situated side by side or stacked one on top of the other (the “one-up, one-down”). There are separate entrances for each unit, and sometimes there are separate garages and yards, as well. The interior layouts of the two units are usually identical, and they always have a shared wall. If the front door of each unit faces the street, the building is usually divided in half, right down the middle of the structure. If one apartment faces front and one has its entrance in the back of the structure, the shared wall is between them. If the units have more than one floor, the stairwell is usually where the shared wall is located. In a one-up, one-down, there may be an external staircase leading to the upper unit. In side-by-side duplexes, the two may be in the center of the structure, with each unit on the end. Each unit in a duplex is identified by its own, individual street address. That means each half either has its own numerical address, or, if the street number is the same, each dwelling is labeled either “A” and “B,” or perhaps “1” and “2.” Lightbulb Bankrate Insight Duplexes are not the only type of multi-family home of their kind: Others include triplexes and quadplexes. These structures work the same as duplexes but contain three or four units, respectively. Typically, the property housing the duplex has a single owner. They may live in one half of the duplex and rent out the other. Or, they may rent out both halves. What is a duplex apartment
In some big cities, where apartment buildings are the norm, “duplex” takes on a slightly different meaning. It often refers to an apartment that spans two stories. An interior staircase — or sometimes a private elevator — connects the floors; each floor often has its own entrance into the building’s hallways. So in this case, the “duplex” refers to the number of levels of a single-family unit, not to a number of units.
What makes a duplex unique
There are several different types of multi-family housing options, such as . And while they and duplexes all have some features in common, such as shared walls, each has unique physical characteristics. Overall, a duplex is much more like a detached house that’s split in two. Only one wall is usually shared between the two units. In contrast, a might resemble a regular apartment in a multi-unit building, with several shared walls, floor and ceiling. Condo holders only own the interior of their unit, too. The rest of the building and surrounding land is typically owned and maintained by a (HOA). Owners are responsible for the maintenance and decor of the interior of the unit, but services like landscaping and snow removal around the property or complex are the responsibility of the HOA. Owners pay a monthly maintenance fee for those services. Physically, , aka row houses, do resemble duplexes: They generally aren’t stacked on top of each other, but they do share walls. However, that physical attachment is all they have. With a townhouse, it’s typical that each unit is owned by a separate person. The townhouse owner does actually possess, and is responsible for, the residence’s exterior, and front and backyard. Additionally, townhouse communities typically come with a set of amenities, like a clubhouse, pool or playground, and all owners in the community have equal access to them. Duplex vs twin home
Duplexes are often confused with, but are not the same as, twin homes. Both are multi-family dwellings with shared walls. They often look identical too. The crucial difference is that, with a duplex, both units occupy the same lot, while twin homes are located on separate lots — the property line runs through the shared wall. In short, a duplex is one structure bifurcated into two units while a twin home is two properties on one lot. That means the twins can, and often do, have separate owners. The owner of each unit in a twin home is responsible for the property expenses on their side of the lot: , homeowners insurance, etc. In a duplex the occupant of one of the units generally is only renting and has no equity in the property — that belongs to the duplex’s owner in the other unit. Or, if the owner lives elsewhere, both units in the duplex are occupied by renting tenants. Duplex vs accessory dwelling unit
Duplexes are also distinct from . ADUs have countless monikers, such as granny flats, garage studios or carriage houses, to name a few. An ADU can be attached to the main residence — it has its own entrance — or can be a small detached structure on the property lot. With both duplexes and ADUs, there’s only one owner of record. The main difference is that the ADU is considered an extension of the main residence — even if it’s separated from it physically — while the duplex is a residence divided into two separate abodes. As such, they’re considered distinct properties, with separate mailing addresses; in contrast, with an ADU, the tenant and the homeowner share the same address. Also, duplexes can only be built on lots or parcels zoned for multifamily construction. The ADU, in contrast, can be built in construction zones (assuming local laws permit).
Buying a duplex what to know
Whether you plan to live in one of the units or not, a duplex can be a worthwhile opportunity for you if you’re a real estate investor. It’s especially common for beginner investors because of its flexibility and the relative ease of . If you’re planning to live in one of the units in your duplex, your options include a or . Buying a duplex is a great option for GenXers and Millennials otherwise squeezed out of the housing market, says mortgage advisor Casey Fleming, author of “The Loan Guide: How to Get the Best Possible Mortgage” and the forthcoming “Buying and Financing Your New Homes,” (spring 2023). It allows for a lower down payment and financing is generally less costly, he notes. As a result, the overall purchase is “cheaper.” And smart business. The duplex owner can live in one of the units while renting the other out to a tenant. That monthly rent will help offset the monthly mortgage payments, or maybe even cover them completely — essentially allowing you to live there for free. In addition, investing in a duplex gives you access to certain tax deductions. For example, you can take deductions for most of your expenses related to yard work, maintenance and repairs because the part of the home is considered an . Of course, “being a landlord is not for everyone,” Fleming cautions — especially in a duplex arrangement. Living next door to a tenant could also lead to them constantly knocking on your door with problems and requesting repairs to every little thing.
How to find duplexes for sale
Duplexes tend to get snapped up quickly on the real estate market. “There are always far fewer duplexes listed for sale than single-family homes, so it’s harder to find a good deal,” Fleming says. If you’re set on a duplex, you can start your search on websites such as Zillow, Realtor.com and LoopNet. Networking with other real estate investors in a local group or association could also help you find the right deal in the area you’re hoping to buy in. You might also consider working with a to help you spot new properties as soon as they’re listed. If you go this route, you’ll likely need to demonstrate that you’re able to get financing promptly (pre-approved for a mortgage) or have another funding source lined up. Your lender may include the potential rental income from one or both units toward your income on your application (likely reduced a little to account for vacancies). Another factor to keep in mind is that if you’re not planning to live in one of the units, the duplex will be considered a full (as opposed to a residence), and interest rates are typically higher on investment properties than residential ones. The down payment requirements can vary, too. “An owner-occupied duplex requires 15 percent down, and an investment property duplex requires 25 percent down,” Fleming explains.
Duplex living pros and cons
There are benefits and drawbacks to purchasing a duplex. Some are dependent on whether you plan on buying the property, living in one half and renting the other out or if you intend on renting both sides to tenants. Pros
A duplex can provide up to two sources of rental income, but you don’t necessarily have to pay twice as much as if you were buying a single-family home. If your duplex has a yard, driveway or garage, you may be able to charge higher rent to tenants wishing to use those amenities. If you have a family member who needs support, such as an elderly parent, you can keep them close by in a duplex without living in the same household. (Note: You may not be able to take additional tax deductions if you’re renting to a family member.) Cons
Duplexes aren’t as common as single-family homes, so you may have fewer options to choose from. If you end up with tenants who are noisy or bothersome, it could be difficult living in proximity to them. Real estate investment isn’t for the faint of heart: Property values can decline. And the business responsibilities of can weigh heavily. SHARE: Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. John Stearns, CMC, CRMS is a Senior Mortgage Loan Originator with American Fidelity Mortgage. Related Articles