Should You Buy a Duplex in Savannah?

Thinking about buying a duplex in Savannah so you can live in one unit and rent the other? You’re not alone. Duplexes can lower your monthly housing cost, build equity, and create a path into real estate investing. In this guide, you’ll learn how to evaluate Savannah’s rules and risks, choose financing that fits a house-hack, run the numbers the right way, and plan your management approach. Let’s dive in.

Why a duplex in Savannah?

Savannah’s economy has multiple drivers that support rental demand, including the Port of Savannah, local universities, and a strong tourism sector that creates seasonal pressures. Those forces can help keep units occupied when you price and position them correctly. Before you buy, look at local price trends, inventory, days on market, and sale-to-list ratios for two-unit properties, not just single-family homes. Pair that with realistic rent comps and vacancy expectations so your cash flow assumptions are grounded.

Build your rent comps using multiple sources and focus on unit-by-unit comparisons that match size, condition, and location. Also consider the seasonality in Savannah’s rental demand when setting lease start dates and pricing. Watch for differences between long-term leases and furnished or short-term approaches, especially inside or near the Historic District. The more you tailor your assumptions to Savannah’s micro-markets, the better your pro forma will reflect reality.

Rules to confirm before you buy

Zoning comes first. Duplexes are allowed in certain residential and multi-family districts, but you should confirm permitted use with the City of Savannah Planning and Zoning Department before you go under contract. If the property sits inside a local or National Register historic district, exterior changes and some renovations may require review and approval from the Historic District Board of Review. Those requirements can add time and cost to your plan.

If you’re considering short-term rentals, Savannah has licensing, location, and safety rules that vary by area, and there are additional restrictions within parts of the Historic District. Confirm the current ordinance, caps, and permit process so your income plan matches what is allowed. Flood risk is another Savannah-specific checkpoint. Review FEMA flood maps and Chatham County resources, and factor potential flood insurance premiums and elevation requirements into your underwriting.

Finally, understand landlord-tenant requirements under Georgia law and local procedures in Chatham County courts. Security deposits must be handled and returned within statutory timeframes with an itemized accounting. Eviction processes and notice periods are governed by state law, and timelines are influenced by local court procedures. Also check whether any local rental registration or business licensing applies to your property before tenant move-in.

Financing and house-hacking options

Owner-occupant loan programs can make a duplex more accessible. FHA supports 1 to 4 unit owner-occupied mortgages and is popular with first-time buyers because of lower minimum down payments and flexible credit guidelines. Conventional loans backed by Fannie Mae or Freddie Mac are also common for two-unit owner-occupied purchases, though down payment and qualification standards can be stricter. VA loans may allow eligible veterans to buy up to a 4-unit property with owner-occupancy, often with no down payment. Some community banks and credit unions offer portfolio loans with flexible terms for small multi-family.

If you plan to buy the duplex strictly as an investment and not occupy a unit, expect higher down payments, tighter underwriting, and higher interest rates. Talk early with a lender who regularly closes two-unit loans in Savannah so you understand exactly how they will underwrite your situation. Ask about current program rules, mortgage insurance, cash reserve requirements, and whether a two-unit appraisal will include a rent schedule.

How lenders count rent from the other unit

Many lenders allow a portion of the other unit’s rent to help you qualify for the loan. The documentation standard varies by program and lender. Some require an existing lease, others rely on the appraiser’s market rent schedule, and many will only count a conservative percentage of projected rent. Get clarity in writing so your pre-approval reflects the actual treatment of rental income and any reserve requirements for a two-unit property.

What to budget up front

Your budget should include down payment, closing costs, inspections, and an appraisal that covers rental income for the second unit. Some buyers set aside a repair escrow for immediate safety or code items identified during inspection. Lenders may require several months of mortgage payments in cash reserves for multi-unit purchases. Build a cushion for vacancy, make-ready costs, and leasing fees so you are not caught off guard in the first year.

Run the numbers like an investor

Start with a simple screen to narrow your list, then dig deeper. A quick filter is the gross rent multiplier, which is purchase price divided by annual gross rent. From there, build a conservative pro forma that includes vacancy and realistic operating expenses.

Define your target return using these metrics:

• Net operating income, or NOI: annual rent minus operating expenses, not including your mortgage.
• Capitalization rate, or cap rate: NOI divided by purchase price, useful for comparing properties.
• Cash-on-cash return: annual pre-tax cash flow divided by total cash invested, including down payment and closing costs.
• Debt service coverage ratio, or DSCR: NOI divided by annual debt service, especially important if you pursue investment financing.

Must-include expenses in Savannah

Do not forget property taxes based on Chatham County assessments and millage rates. Budget for a landlord insurance policy and, if needed, flood insurance, which standard policies do not include. Estimate utilities you may carry between tenants or if systems are shared. Set aside funds for routine maintenance and repairs, typically 5 to 10 percent of rent for older stock, and a separate capital expenditure reserve for big items like roofs or HVAC.

If you plan to hire professional management, include ongoing management fees and leasing or placement fees. Account for legal costs related to lease preparation or, in worst-case scenarios, eviction. Last, include turnover and make-ready expenses such as paint, cleaning, landscaping, and marketing.

Plan your operations

Tenant placement and leases

Decide who each unit is intended to serve, such as students, professionals, or long-term renters, and price accordingly. Use a consistent, fair screening process that reviews credit, income, rental history, and references while following federal, state, and local fair housing laws. Write clear leases for each unit. Address parking, yard care, quiet hours, and any shared spaces in plain language. Stagger lease expirations when possible to avoid both units turning over at the same time.

Maintenance and common systems

One advantage of a duplex is that two units share one footprint. That can reduce per-door costs for routine service. Be mindful of common systems such as plumbing, roofs, or HVAC equipment that could affect both units if they fail. Older Savannah properties sometimes need utility separation, life-safety upgrades, and electrical or plumbing improvements to meet modern expectations and codes. A multi-family-experienced inspector is worth the investment.

Property management: self vs. professional

If you live onsite and have time, self-management can work and may reduce operating costs. Just be ready to handle leasing, maintenance coordination, rent collection, legal notices, and after-hours calls. Professional managers typically charge about 8 to 12 percent of monthly rent for long-term leases, plus leasing or placement fees and maintenance markups. Full-service management can streamline compliance, communications, and accounting, especially if you are new to landlording or plan to buy more units.

Insurance and risk

Match your coverage to your actual use. An owner-occupied homeowners policy will not fully cover a rental unit, so you will likely need a landlord policy, often a DP-3 or similar, for the rented side. In flood-prone areas, a separate flood policy may be required by your lender. Duplexes add liability exposure because of multiple occupants and any shared spaces. Consider endorsements or an umbrella policy and make sure smoke alarms, carbon monoxide detectors, and egress meet standards.

Duplex vs. single-family rentals

Pros of buying a duplex in Savannah:

• Two income streams on one lot, which can improve yield.
• Easier access to owner-occupant financing when you house-hack.
• Diversified vacancy risk, since one unit can stay occupied while the other turns over.
• Potential economies of scale for maintenance and management.

Cons to keep in mind:

• More day-to-day complexity with two leases and different tenant needs.
• Higher wear and the potential for neighbor conflicts across a shared wall or yard.
• Added regulatory and insurance layers, including flood and historic-district considerations.
• A narrower resale market compared with single-family homes in some neighborhoods.

A practical decision checklist

1. Market fit

• Do you have reliable rent comps for each unit size and condition?
• What vacancy rate will you assume based on recent Savannah trends and seasonality?

2. Zoning and permits

• Is the property legally a duplex in the correct zoning district?
• Are there Historic District or short-term rental restrictions that affect your plan?

3. Physical condition

• Are utilities separately metered, and are life-safety systems compliant?
• What immediate repairs or code items need to be addressed before leasing?

4. Financing and cash flow

• Which loan program fits your situation, and how will the lender treat other-unit rent?
• Have you calculated NOI, cap rate, and cash-on-cash with conservative expense and vacancy assumptions?

5. Insurance and flood risk

• Is the property in a flood zone, and what will that policy cost?
• Are premiums higher due to age, systems, or historic status?

6. Management plan

• Will you self-manage or hire a property manager, and what are the fees?
• How will you handle leasing, tenant communication, and after-hours requests?

7. Tax and exit planning

• Have you discussed depreciation, rental income reporting, and your exit strategy with a CPA?
• If house-hacking, do you understand how partial owner-occupancy could affect capital gains when you sell?

What to do next in Savannah

• Get pre-approved with a lender who regularly closes owner-occupied two-unit loans, and confirm how they count rental income and any reserve requirements.
• Ask your agent for a unit-by-unit rent analysis and vacancy assumptions aligned with Savannah’s submarkets.
• Hire a multi-family-focused inspector and request a report that addresses utility separation, fire separation, egress, electrical, plumbing, roof, and HVAC.
• Verify zoning, permits, and any historic-district review requirements with the City of Savannah. If any past work was done, confirm that it was permitted.
• Pull the flood map panel and obtain insurance quotes for both landlord coverage and flood. Build those premiums into your pro forma.
• Interview property managers about fees, leasing processes, and reporting so you can operate smoothly from day one.

If you want a single point of accountability to help you buy, lease, and manage, we’re here to help. Schedule a conversation with Marcy Todd to map your financing, due diligence, and management plan so your Savannah duplex starts cash flowing with confidence.

FAQs

Can I use an FHA loan to buy a duplex in Savannah?

• Yes, FHA supports 1 to 4 unit owner-occupied mortgages, and you must live in one unit as your primary residence; confirm current down payment and occupancy rules with your lender.

Will the second unit’s rent help me qualify for a mortgage?

• Often yes, but lenders vary on documentation and the percentage of rent they count, so ask your lender exactly how they treat rental income from the other unit.

Are duplexes harder to manage than single-family rentals in Savannah?

• They can be more complex due to two leases and shared systems, but they also offer economies of scale and diversified income that many owners find worthwhile.

What should I know about flood insurance for Savannah duplexes?

• Many areas are flood-prone, standard policies exclude flood, and a separate flood policy may be required by your lender, so include that premium in your operating budget.

Do historic district rules limit what I can do with a Savannah duplex?

• Historic-district review can affect exterior changes and renovations, and short-term rental rules can be stricter in certain areas, so verify requirements before you buy.