Following is a response from DHS Senior Analysis & Research Manager, Shireen Assaf:
Dear user,
The following Stata code can be used to compute the crowding index from the HR file. You can then recode this index to a binary variable if you like as I have shown with the variable "crowded".
Thank you.
Best,
Shireen
Stata code:
* calculating crowding index
gen hhusual =hv012
replace hhusual=hv013 if hhusual==0
gen crowd=.
replace crowd=trunc(hhusual/hv216) if hv216>0
replace crowd=hhusual if hv216==0
replace crowd=. if hv216>=99
label var crowd "crowding index"
recode crowd (0/2=0 "No") (3/max=1 "Yes"), gen(crowded)
label var crowded "Three or more people living in the same room"