I have a set of 12 variables that describe the dwelling characteristics. 10 of them are dummies (i.e questions like "does the dwelling have a bath?" or "is there crime in the area?"), while one is a 4-level categorical variable determining the kind of accommodation and the last one reports the total number of room in the accommodation. What I would like to do is to create a "similarity" index for the accommodation of each household. The aim is to use this index to impute the reported monthly gross rent paid by tenants to the occupiers-owner household with accommodation with same characteristics of the tenants. Therefore, having the characteristics of the houses for both tenants and owners, how can I create this sort of "similarity index"? Is it sufficient rely on clustering methods or a Jaccard coefficients shall be used on dummies variables only and using "if else" conditions for matching the other two remaining variables?