Need advice about my In laws!!

My husband and I got married in January & had our daughter in May. We have been living with his family to save money until we could move out. We pay his family $500 in “rent” for just one room. (No private bathroom). We have very little privacy or alone time here because there’s SEVEN other people in the house. No contract or lease was written up, this was just a verbal agreement. Well, yesterday my husband & I got approved to move into a 2 bedroom apartment in a great , safe area & we are so happy! Our move in date is October 14 so about a month and a half away! However, his family is mad. Saying now they’re loosing $500/month in rent money and really making us feel guilty about wanting our own home. It really bums us out but we are still moving , no matter how they feel. We know we are doing what’s best for our family. I just don’t know how to handle his in-laws. We tried to explain our reasoning but it’s “their way or the highway”. However, we are a young couple (22) & really feel that we need to be on our own to get a little privacy back & have quality family time without his parents and his siblings always around.