Housing prices are high, mortgage rates are high, and competition is fierce so revenue is way downIt’s one thing if you bought a while back like many of us did, so your cost basis is much lower.

Renting out a room is a great way to get started, and I wouldn't get too settled into the "going rate" use that almost as a floor. 

This sudden jump in rates has not fully caught up with market cap rates yet since especially in the commercial and multifamily property markets, transactions typically take 6 months to transact, creating a lag effect between interest rates and market cap rates since interest rates adjust daily.

Funny you mentioned a $600K house doesn’t pencil out as a rental.

Quote from @John Friendas: There's a house I'm considering buying with a business partner as an investment rental.

In many markets section 8 is higher than market rate. and investors need that extra return to mitigate the risk of sec 8 tenants generally speaking.

I don't think the future will be kind to the investors who bought cheap houses in a big community of other investors. 

Consider house hacking when rates and prices are a little more balanced with reality.

@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

Charge the tenants a higher rent rate and include utilities with their rent.