Rent vs Buy Calculator: When Does Buying Pay Off?
Compare what renting and buying cost over the years you plan to stay, counting the equity you would own at the end. The comparison works the same in every state; pick yours to fill in its median home value, two-bedroom Fair Market Rent, property tax rate and average insurance premium, then replace any of them with your own figures.
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Additional Details
Pre-filled: U.S. effective rate on owner-occupied housing, Census ACS 2024 (aggregate taxes paid / aggregate value)
Pre-filled: NAIC countrywide HO-3 average premium (data for 2023)
Additional Details
Recommendation
Estimated • Based on your inputs
Net Cost of Buying (after equity)
$125,619.00
Total Cost of Renting
$165,509.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How this calculator works
Owning costs the down payment and any closing costs up front, then each year the 30-year fixed principal and interest, property tax (your rate times the home's value that year), insurance and maintenance of 1% of the value. Renting costs twelve months of rent a year, raised by your yearly increase. The net cost of buying subtracts what you own at the end: the appreciated value minus the loan balance. The breakeven is the first year that net cost falls below the rent paid so far. Selling costs, PMI, HOA dues, renters insurance, mortgage-interest deductions and what a renter could earn on the down payment are left out.
Source: Zillow ZHVI, HUD FY2027 Fair Market Rents, Tax Foundation (Census ACS) and NAIC (state table and picker) checked
Home value, rent, property tax and insurance by state
The four figures the state picker fills in. Yearly property tax is the state's effective rate on its median-valued home.
| State | Median home value | 2-bedroom FMR | Property tax rate | Property tax per year | HO-3 premium |
|---|---|---|---|---|---|
| Alabama | $242,000 | $1,175 | 0.37% | $895 | $1,906 |
| Alaska | $401,000 | $1,539 | 0.94% | $3,769 | $1,216 |
| Arizona | $423,000 | $1,619 | 0.48% | $2,030 | $1,194 |
| Arkansas | $229,000 | $1,073 | 0.56% | $1,282 | $1,870 |
| California | $776,000 | $2,715 | 0.7% | $5,432 | $1,655 |
| Colorado | $543,000 | $1,944 | 0.5% | $2,715 | $2,492 |
| Connecticut | $455,000 | $2,039 | 1.54% | $7,007 | $2,036 |
| Delaware | $412,000 | $1,753 | 0.54% | $2,225 | $1,196 |
| Florida | $378,000 | $2,005 | 0.78% | $2,948 | $2,779 |
| Georgia | $335,000 | $1,528 | 0.79% | $2,647 | $1,828 |
| Hawaii | $837,000 | $2,487 | 0.29% | $2,427 | $1,549 |
| Idaho | $482,000 | $1,372 | 0.5% | $2,410 | $1,135 |
| Illinois | $299,000 | $1,752 | 1.88% | $5,621 | $1,480 |
| Indiana | $262,000 | $1,320 | 0.76% | $1,991 | $1,259 |
| Iowa | $241,000 | $1,125 | 1.33% | $3,205 | $1,342 |
| Kansas | $253,000 | $1,213 | 1.21% | $3,061 | $1,733 |
| Kentucky | $235,000 | $1,177 | 0.74% | $1,739 | $1,525 |
| Louisiana | $218,000 | $1,177 | 0.55% | $1,199 | $3,027 |
| Maine | $424,000 | $1,755 | 0.98% | $4,155 | $1,150 |
| Maryland | $436,000 | $2,104 | 0.92% | $4,011 | $1,578 |
| Massachusetts | $673,000 | $2,598 | 1% | $6,730 | $2,134 |
| Michigan | $270,000 | $1,381 | 1.19% | $3,213 | $1,110 |
| Minnesota | $357,000 | $1,532 | 1% | $3,570 | $1,988 |
| Mississippi | $198,000 | $1,095 | 0.58% | $1,148 | $2,029 |
| Missouri | $272,000 | $1,266 | 0.89% | $2,421 | $1,589 |
| Montana | $476,000 | $1,562 | 0.61% | $2,904 | $1,768 |
| Nebraska | $284,000 | $1,274 | 1.44% | $4,090 | $2,142 |
| Nevada | $448,000 | $1,686 | 0.5% | $2,240 | $1,013 |
| New Hampshire | $523,000 | $2,016 | 1.5% | $7,845 | $1,300 |
| New Jersey | $585,000 | $2,321 | 1.88% | $10,998 | $1,551 |
| New Mexico | $321,000 | $1,292 | 0.63% | $2,022 | $1,490 |
| New York | $526,000 | $2,565 | 1.3% | $6,838 | $1,801 |
| North Carolina | $340,000 | $1,460 | 0.66% | $2,244 | $1,852 |
| North Dakota | $294,000 | $1,107 | 0.92% | $2,705 | $1,414 |
| Ohio | $252,000 | $1,294 | 1.36% | $3,427 | $1,116 |
| Oklahoma | $225,000 | $1,141 | 0.79% | $1,778 | $2,486 |
| Oregon | $504,000 | $1,710 | 0.81% | $4,082 | $1,003 |
| Pennsylvania | $294,000 | $1,556 | 1.26% | $3,704 | $1,217 |
| Rhode Island | $517,000 | $1,917 | 1.12% | $5,790 | $2,396 |
| South Carolina | $309,000 | $1,396 | 0.49% | $1,514 | $1,753 |
| South Dakota | $326,000 | $1,191 | 1% | $3,260 | $1,614 |
| Tennessee | $339,000 | $1,406 | 0.52% | $1,763 | $1,649 |
| Texas | $303,000 | $1,517 | 1.4% | $4,242 | $2,864 |
| Utah | $542,000 | $1,506 | 0.48% | $2,602 | $1,107 |
| Vermont | $402,000 | $1,816 | 1.51% | $6,070 | $1,215 |
| Virginia | $420,000 | $1,791 | 0.78% | $3,276 | $1,537 |
| Washington | $603,000 | $2,106 | 0.75% | $4,523 | $1,232 |
| West Virginia | $183,000 | $1,040 | 0.51% | $933 | $1,179 |
| Wisconsin | $342,000 | $1,275 | 1.32% | $4,514 | $923 |
| Wyoming | $373,000 | $1,107 | 0.53% | $1,977 | $1,853 |
Median value: Zillow Home Value Index (ZHVI), state series, June 2026. Rent: HUD FY2027 Fair Market Rent, in force 2026-10-01 to 2027-09-30, statewide renter-weighted average. Property tax: Tax Foundation effective rate on owner-occupied housing (Census ACS 2024). Insurance: NAIC average HO-3 premium, data for 2023.
Frequently Asked Questions
Is it cheaper to rent or buy?
It depends on how long you stay. For a $400,000 home with 20% down at 6.75%, $1,800 rent rising 3% a year, 3% yearly appreciation, the 0.94% national effective property tax rate and the $1,737 countrywide average premium, the calculator's answer over 7 years is "Buy — saves $39,890 over 7 years" (breakeven: year 1). That leaves out closing and selling costs, which push the breakeven later: enter the closing costs from your Loan Estimate, your own price, rent and rate, and the years you expect to stay.
Do higher property taxes push the breakeven later?
Yes. Property tax is charged on the home's value every year, so it raises the cost of owning and not of renting. With the other example figures unchanged, a 0.5% rate breaks even in year 1 and a 2% rate in year 5. Each state's effective rate is in the table below.