It may be harder to set off the entire mortgage payment with house hacking, but any amount that you can lower your living expense is a win while simultaneously having your property appreciate.

Where you live?

If it is simply the house and the tenant pays all the utilities, I personally would not charge more because you are renting them the house-not based on how many people are living there. 

-Current market rent is $1,250 per unitHere is what numbers look like when I live there: We currently pay $1,450/month in rent right now so that's something to consider.

Just a home that you rent by the room while living there?

I don't live off this cashflow so that alone doesn't bother me. 

My partner and I currently live in Brooklyn in a 1bd 1ba condo that we would like to rent out for about $1500/mth to a family member.

I live in NJ and just don’t have the time anymore to give them the attention they need to succeed.

Or you can do just a smidge more and present a property people would actually want to live inside. 

Even if you buy something that needs slight renovations, you can do them while living there, and then in a year or 2, you can rent that one and have 2 units in your portfolio, and buy another primary residence to move into with 3.5-5% down.