The short answer is no - you cannot move out and rent the entire home while a reverse mortgage is in place.  But the full answer depends on your property type and situation, and there are more options than most people realize.

The occupancy requirement

A reverse mortgage requires the home to be the borrower's principal residence - the place where you live for the majority of the year.  The moment the original borrower no longer occupies the home as their primary residence, the loan becomes due and payable.   If the lender discovers you have moved out and are renting the property to someone else, they will call the loan and begin the process of requiring repayment.

This is not a technicality.  It is a core condition of the loan that your servicer must monitor.  HECM borrowers must certify occupancy in writing annually, and servicers conduct periodic occupancy checks.

What you can do

Renting rooms or having a roommate while you continue to live in the home is permitted.  Many borrowers do this to offset living expenses.  As long as you remain in the home as your primary residence, bringing in a tenant for a spare room or an attached in-law suite does not violate the loan terms - provided any rental arrangement is a standard lease of 30 days or more.  Short-term rentals through platforms like Airbnb are not permitted.

If you own a two-to-four unit property and occupy one unit as your principal residence, you can rent the other units.  That is a common and fully permissible arrangement under HUD guidelines.  The rental income from those units may even be counted toward your financial assessment under certain conditions.

Temporary absences

Being temporarily away from home does not trigger the due and payable provision.  If you are traveling or spend time elsewhere, the home is still considered your principal residence as long as you return.  The line gets drawn at 12 consecutive months.  If all borrowers are absent for more than 12 consecutive months, including a stay in a health care facility, the property is no longer considered a principal residence and the loan becomes due.

If you plan to be away for more than two months, notify your servicer.   That is a requirement under the loan terms and keeps you in good standing.

If you can no longer live in the home

If you need to move out permanently - whether for health reasons, a move to assisted living, or any other reason - renting the home is not a viable option.  The better path is to sell the property, pay off the reverse mortgage balance, and keep whatever equity remains.  If the loan balance exceeds the home's value, the non-recourse protection means you owe nothing beyond the value of the home.

The bottom line

You can rent rooms, have roommates, or rent additional units on a multi-unit property as long as you continue living in the home.  What you cannot do is move out and turn the entire property into a rental.   If your circumstances are changing and you are not sure where the line is, contact your servicer before making any moves.

Reference: HUD Handbook 4000.1, Section II.B.2.ii(A)(2) - Principal Residence Requirements (PDF pages 566-567).