What are the taxes on selling my home?

[Chance Calhoun]

Hello!

My wife and I own a home in Woodinville, WA and next year will be our second year owning the home. We plan to sell and use the $500k exception to the capital gains taxes because we lived there for two years. 

Our house has a main part of the house and a MIL apartment in the basement. We have lived in the MIL and rented the rest of the home. We sort of house hacked this property. 

My question is, does the fact that we rented the home exclude us from being eligible on not paying taxes on the first $500k proceeds from selling after two years?

We thank everyone in advance for their help!