# Building to rent out: double unit, upper portion or whole house, which earns more

URL: https://which.pk/property/guides/building-a-house-to-rent-out/
Author: Ahtisham
Updated: 18 Oct 2026

## Summary

In our check of two areas, a double unit house for rent didn't earn more than a whole house. In Zameen listings on 18 October 2026, two 5 marla portions in Johar Town, Lahore asked a median Rs 1.16 lakh a month together against Rs 1.25 lakh for a whole house, and for 1 kanal Rs 2.78 lakh against Rs 3.53 lakh. Portions suit owners living on one floor. A second electricity meter needs its own entrance and kitchen. Rent is taxed with other income after a one-fifth repairs allowance.

## Key facts

- 5 marla, two portions vs whole house (Johar Town): Rs 1.16 lakh vs Rs 1.25 lakh
- 1 kanal, two portions vs whole house (Johar Town): Rs 2.78 lakh vs Rs 3.53 lakh
- Second meter needs: Own entrance and kitchen
- Repairs allowance on rent: One-fifth

A double unit house for rent doesn't earn more than letting the whole house, on the evidence we found. In Zameen's listings on 18 October 2026, a lower and an upper portion of a **5 marla** house in Johar Town, Lahore asked a median **Rs 1.16 lakh a month together**, against **Rs 1.25 lakh** for a whole 5 marla house. For **1 kanal** the gap was wider: Rs 2.78 lakh for two portions against Rs 3.53 lakh for a whole house.

Building two units pays off in other ways: you can live in one floor and let the other, and one empty portion doesn't stop all your rent. Below is the rent evidence, the rules on meters and storeys, and the tax.

## What is a double unit house?

A double unit house is built as two separate homes, usually one per floor, each with its own kitchen, bathroom and entrance. LDA's Building and Zoning Regulations define a dwelling unit as "a part or whole of a residential building capable of being used independently for human habitation", and require every independent unit to have at least one WC and one bathroom.

Listings call these "upper portion" and "lower portion". A "single unit" house is one home over one or more floors.

## Does a double unit house earn more rent than a single house?

On 18 October 2026 we read Zameen rental listings in two areas, Johar Town in Lahore and G-13 in Islamabad: up to 150 per type in Zameen's default order (all 106 upper and 84 lower portions in Johar Town; 150 of 181 houses there; in G-13 all 125 upper portions, 150 of 155 lower portions and 150 of 186 houses). We compared the median asking rent by plot size.

| Area and plot | Whole house | Lower portion | Upper portion | Both portions | Portions as % of house |
|---|---|---|---|---|---|
| Johar Town, Lahore, 5 marla | Rs 125,000 | Rs 56,000 | Rs 60,000 | Rs 116,000 | 93% |
| Johar Town, Lahore, 1 kanal | Rs 352,500 | Rs 148,000 | Rs 130,000 | Rs 278,000 | 79% |
| G-13, Islamabad, about 4 marla | Rs 125,000 | Rs 55,000 | Rs 60,000 | Rs 115,000 | 92% |
| G-13, Islamabad, about 10 marla | Rs 260,000 | Rs 125,000 | Rs 125,000 | Rs 250,000 | 96% |
| G-13, Islamabad, about 14 marla | Rs 382,500 | Rs 150,000 | Rs 140,000 | Rs 290,000 | 76% |

Source: which.pk analysis of Zameen.com asking rents, 18 October 2026. Plot size from the listed area at 225 sq ft a marla. The "both portions" and percentage columns are our calculation.

In these two areas, on plots up to 10 marla, two portions brought in about 92% to 96% of a whole house's rent. On 14 marla and 1 kanal plots it drops to 76% to 79%. Upper portions asked slightly more than lower portions on 5 marla and smaller plots, the same on 10 marla, and less on 14 marla and 1 kanal.

**What this comparison can't tell you:** These are asking rents, not the rents tenants finally agreed. Each column is a different set of buildings, so a portion listing may be an older or smaller house than a whole-house listing of the same plot size. Each median rests on 9 to 57 listings (house, lower, upper): Johar Town 5 marla 57, 47, 25; 1 kanal 44, 9, 35; G-13 about 4 marla 30, 24, 15; about 10 marla 23, 35, 30; about 14 marla 44, 34, 41. Two areas don't represent a whole city, and groups under 10 listings are a rough guide only.

## When is a double unit worth building?

The table compares letting everything. Your own plans change the answer:

- **You will live in one floor.** A single house you live in earns nothing. A double unit lets you let the other floor: Rs 56,000 to Rs 60,000 a month for a 5 marla portion in Johar Town, from the listings above.
- **You want to spread vacancy risk.** With two tenants, one empty portion leaves you about half your rent instead of none.
- **You want the highest rent on a large plot.** On 1 kanal, a whole house asked about Rs 75,000 a month more than two portions in Johar Town.

## How much have house rents gone up?

Zameen's rent index tracks whole houses only; its upper and lower portion pages show no data. For houses, the average asking rent in August 2026, the latest month the index shows:

| City | 5 marla house | A year earlier | 10 marla house | A year earlier |
|---|---|---|---|---|
| Lahore | Rs 104,716 | Rs 86,892 | Rs 173,405 | Rs 149,260 |
| Islamabad | Rs 120,640 | Rs 105,040 | Rs 212,100 | Rs 170,100 |
| Rawalpindi | Rs 78,110 | Rs 67,410 | Rs 151,270 | Rs 133,982 |
| Karachi | Rs 133,882 | Rs 102,200 | Rs 163,458 | Rs 117,044 |

That is a rise of 13% to 40% in a year (our calculation), the largest for 10 marla houses in Karachi.

## What do building rules allow?

In LDA-approved schemes in Lahore, a house on a **5 to under 10 marla** plot may have up to **3 storeys**, cover 75% of the plot and rise 38 ft. From **10 marla to under 1 kanal**, up to **4 storeys**, 70% coverage and 45 ft. Above 38 ft, LDA needs a structure stability certificate and drawings vetted by a structural engineer on its panel.

We found no clause in the LDA regulations capping the number of dwelling units in a house. We read a third-party copy of the 2019 regulations (as amended to January 2020), because LDA's own link no longer works; confirm the current version with LDA before you submit a plan.

We couldn't check Islamabad's rule on the number of units per house: CDA's zoning regulations are online only as scanned images. Ask CDA's building control directorate, or your society's office if you are in a private scheme, before you draw two units.

## Can you get a separate electricity meter for each portion?

Yes, under conditions. In June 2025 the Power Division said a second meter is still allowed under NEPRA's Consumer Service Manual 2021 for a residential property with separate sections that have **their own entrance and kitchen**, as Daily Pakistan and APP reported.

So plan a separate entrance and a full kitchen for each unit at the drawing stage. We couldn't read the manual itself: NEPRA's website blocked our requests.

## What is the tax on rental income in Pakistan?

Rent is taxed under the head "Income from Property" in section 15 of the Income Tax Ordinance. Since 2021, an individual's rent no longer has its own rate table: it is added to your other income and taxed at the normal slabs.

Before the tax is worked out, you can deduct (section 15A):

- **one-fifth of the rent** as a repairs allowance
- building insurance premium
- property tax and other local charges on the property
- profit paid on a loan taken to buy, build or extend the property

For 2026-27, non-salaried income is taxed at 0% up to Rs 600,000 a year and 15% from Rs 600,000 to Rs 1.2 million, rising in steps to 45% above Rs 5.6 million. If salary is more than 75% of your taxable income, the salaried slabs apply instead. See [income tax slabs 2026-27](/business/guides/income-tax-slabs-2026-27/).

**Example: two 5 marla portions, no other income:** About Rs 77,040 tax a year (Rent Rs 56,000 + Rs 60,000 a month = Rs 13.92 lakh a year. Less one-fifth repairs allowance = Rs 11.14 lakh. Tax at 15% on the amount above Rs 6 lakh. Our calculation, 2026-27 rates; other deductions would lower it.)

**Withholding by tenants.** Some tenants must deduct tax from the rent they pay you (section 155). They include companies, government bodies, non-profits, private schools, hospitals, clinics, boutiques and beauty parlours, and any individual paying **Rs 1.5 million or more** in rent a year. For an individual landlord in 2026-27 the rate is nil up to Rs 300,000 a year, 5% on the next Rs 300,000, Rs 15,000 plus 10% between Rs 600,000 and Rs 2 million, and Rs 155,000 plus 25% above that.

Rent below the market rate doesn't cut your tax: the law treats you as receiving the fair market rent.

## Paperwork before the tenants move in

Give each portion's tenant a written agreement. See [rent agreement in Pakistan](/property/guides/rent-agreement-pakistan/) for what to include and how to register it, and [tenant registration in Punjab](/property/guides/tenant-registration-punjab/) for the police record. File the rent in your return: [how to file an income tax return](/business/guides/how-to-file-income-tax-return/).

To budget the build, see [house construction cost in Pakistan](/property/guides/house-construction-cost-pakistan/) and [construction material prices](/property/guides/construction-material-prices/). Zameen's calculator already assumes 2 kitchens for a 5 marla double storey, at Rs 95.44 lakh finished in Lahore (16 October 2026).

More guides: [property tax in Punjab](/property/guides/property-tax-punjab/), [home loans in Pakistan](/money/guides/home-loan-pakistan/), [Property](/property/).

## Questions people ask

### What is a double unit house?

A house built as two independent homes, usually one per floor, each with its own kitchen, bathroom and entrance. LDA's building regulations call each part that can be lived in independently a dwelling unit.

### Does renting two portions earn more than renting the whole house?

Not in the listings we checked. In Johar Town, Lahore, a 5 marla lower and upper portion asked Rs 1.16 lakh a month together against Rs 1.25 lakh for a whole house (median asking rents on Zameen, 18 Oct 2026). In G-13, Islamabad, the pattern was the same.

### Can I get a separate electricity meter for an upper portion?

Yes, if the portion has its own entrance and kitchen, according to the Power Division's June 2025 statement on NEPRA's Consumer Service Manual 2021.

### How much tax do I pay on rental income in Pakistan?

An individual's rent, less allowed deductions such as one-fifth for repairs, is added to other income and taxed at the normal slabs. For non-salaried income in 2026-27 that is 0% up to Rs 6 lakh a year and 15% on the next Rs 6 lakh.

## Sources

- [Upper portions for rent in Johar Town, Lahore (listings, 18 Oct 2026)](https://www.zameen.com/Rentals_Upper_Portions/Lahore_Johar_Town-93-1.html), Zameen.com (accessed 18 Oct 2026)
- [Lower portions for rent in Johar Town, Lahore (listings, 18 Oct 2026)](https://www.zameen.com/Rentals_Lower_Portions/Lahore_Johar_Town-93-1.html), Zameen.com (accessed 18 Oct 2026)
- [Houses for rent in Johar Town, Lahore (listings, 18 Oct 2026)](https://www.zameen.com/Rentals_Houses_Property/Lahore_Johar_Town-93-1.html), Zameen.com (accessed 18 Oct 2026)
- [Upper portions for rent in G-13, Islamabad (listings, 18 Oct 2026)](https://www.zameen.com/Rentals_Upper_Portions/Islamabad_G_13-330-1.html), Zameen.com (accessed 18 Oct 2026)
- [Lower portions for rent in G-13, Islamabad (listings, 18 Oct 2026)](https://www.zameen.com/Rentals_Lower_Portions/Islamabad_G_13-330-1.html), Zameen.com (accessed 18 Oct 2026)
- [Houses for rent in G-13, Islamabad (listings, 18 Oct 2026)](https://www.zameen.com/Rentals_Houses_Property/Islamabad_G_13-330-1.html), Zameen.com (accessed 18 Oct 2026)
- [Zameen Index: 5 marla house rents in Lahore (also Islamabad, Rawalpindi, Karachi; 5 and 10 marla)](https://www.zameen.com/index/rent/houses/lahore-1/5-marla/), Zameen.com (accessed 18 Oct 2026)
- [5 Marla Construction Cost in Lahore](https://www.zameen.com/tools/construction-cost-calculator/5-marla-house-construction-cost-lahore-1/), Zameen.com (accessed 18 Oct 2026)
- [LDA Building and Zoning Regulations 2019, amended to 28 Jan 2020 (third-party copy)](https://khalidzafar.com/wp-content/files_mf/1685711737LDAAmendedBuildingRegulations2019.pdf), Lahore Development Authority (accessed 18 Oct 2026)
- [More than one electricity meter installation still allowed, Power Division clears air (8 Jun 2025)](https://en.dailypakistan.com.pk/08-Jun-2025/more-than-one-electricity-meter-installation-still-allowed-power-division-clears-air), Daily Pakistan (accessed 18 Oct 2026)
- [Power Division denies reports of ban on installing second electricity meters (8 Jun 2025)](https://www.app.com.pk/?p=1008342), APP (accessed 18 Oct 2026)
- [Income Tax Ordinance 2001, amended up to 30 June 2026](https://download1.fbr.gov.pk/Docs/2026724177725705IncomeTaxOrdinanace2001.pdf), FBR (accessed 18 Oct 2026)
- [Withholding Income Tax Rate Card, updated up to 30 June 2026](https://download1.fbr.gov.pk/Docs/202681113864992WithholdingTaxRatesCard2027.pdf), FBR (accessed 18 Oct 2026)