Quick answer
For a typical $420,000 US house that rents for $2,100, renting edges out buying over 10 years by about $41,000, with all costs counted. The answer flips easily. A $350,000 house at the same rent, or a low property-tax state, makes buying equal or better. Upkeep, property tax and how long you stay decide most cases.
Is it better to rent or buy a house?
For a typical US house, buying and renting are close. On our defaults, renting a $420,000 house for $2,100 a month and investing the difference finishes about $41,000 ahead of buying after 10 years. Small differences decide it: a house that’s a little cheaper relative to rent, a low property-tax state or a longer stay can make buying the winner. This rent vs buy home calculator lets you plug in the specific house you’re looking at and get an answer for that house.
Buying a house is different from buying a condo or apartment. There’s usually no HOA fee, but you pay for everything yourself: the roof, the furnace, the driveway, the yard. Property tax is charged on a higher value, and insurance can be more expensive. Those owner-only costs are what this calculator is built to capture.
How to use the rent vs buy home calculator for a house
Fill in these inputs in this order:
- Asking price of the house, or your likely offer.
- Rent for a comparable house. Look at single-family rental listings with the same bedrooms, size and school district. Don’t use your apartment rent.
- Your county’s property tax rate. This is the house-specific input with the most impact. US rates range from roughly 0.3% to over 2% of value.
- Maintenance. Keep 1% for a newer house in good condition. Use 1.5% or more for an older house, a big lot or a home with a pool.
- Insurance. Get a quote. Premiums vary a lot by state and climate risk.
- Mortgage rate and down payment from a real loan estimate.
- Horizon. We’ve set this page to 10 years, which is a common length of time to stay in a family house. Shorten it if you expect to move sooner.
Worked example: buying vs renting a $420,000 house
Upfront cash. A $84,000 down payment plus $12,600 of closing costs comes to $96,600.
The loan. $336,000 at 6.3% over 30 years. With a monthly rate of 0.525% over 360 payments, the amortization formula gives $2,080 a month in principal and interest.
The rest of the owner’s bill. Property tax at 1.1% adds $385 a month. Maintenance at 1% adds $350, and insurance at 0.55% adds $193. The total is $3,007 a month in year one. The renter pays $2,100 rent and $15 for renter’s insurance.
What the owner has after 10 years:
| After 10 years | Amount |
|---|---|
| House value (3.5% a year) | ~$592,000 |
| Mortgage still owed | ~$283,000 |
| Equity before sale | ~$309,000 |
| Selling costs (6%) | ~$35,500 |
| Equity you keep | ~$273,500 |
What the renter has: a portfolio of about $315,000, built from the $96,600 invested on day one and the monthly difference invested at 7%.
Verdict: renting is ahead by about $41,000. The break-even rent is about $2,310. If a comparable house nearby rents for more than that, buying this house is the better financial choice over 10 years.
Three houses, three different answers
Change one thing and the verdict can change. Each scenario below keeps the other defaults and uses a 10-year horizon.
| House | Key difference | 10-year result | Break-even rent |
|---|---|---|---|
| $350,000 starter house, rents for $2,100 | Cheaper relative to rent | Buying ahead by ~$35,000 (from year 6) | ~$1,920 |
| $420,000 house in a 0.5% property-tax area | Low property tax | About even (buying ahead by under $1,000) | ~$2,100 |
| $500,000 house, rents for $2,400 | Pricier relative to rent | Renting ahead by ~$69,000 | ~$2,750 |
| $420,000 older house, 1.5% maintenance | Higher upkeep | Renting ahead by ~$76,000 | ~$2,490 |
The pattern is easy to read. Buying a house wins when the price is low relative to rent and when owner-only costs (property tax and upkeep) are modest. The price-to-rent ratio is the house price divided by a year’s rent. In these rows it ranges from about 13.9 for the starter house to 17.4 for the $500,000 one, and that spread alone moves the result by more than $100,000.
House-specific costs the calculator asks you to estimate
Maintenance is lumpy. The 1% figure is an average. In practice you might spend very little for three years and then replace a roof or an HVAC system. Keep a cash reserve as well as budgeting the average.
Property tax is reassessed. In many US areas a sale triggers a reassessment at the new price. The previous owner’s tax bill may be much lower than yours will be. Check with the county assessor.
Insurance can rise faster than inflation. In areas exposed to wildfire, hurricanes or flooding, premiums have been volatile. Flood insurance is often a separate policy. Enter a realistic percentage rather than the 0.55% default if you’re buying in a high-risk area.
Selling costs are high. The 6% default covers agent commissions and closing costs. That’s why a house bought for a short stay rarely beats renting. Read more in hidden costs of owning a home.
How long do you need to stay in a house for buying to pay off?
On these defaults the break-even rent falls as your stay gets longer: about $3,040 for 3 years, $2,620 for 5 years and $2,310 for 10 years. In other words, the longer you stay in the house, the lower the rent needs to be for buying to win. If you expect to move for work within a few years, a house is unlikely to beat renting unless it’s unusually cheap relative to rent. For more on timing, see the rent vs buy break-even point.
Renting a house vs owning one: what the numbers leave out
Single-family rentals have their own trade-offs, and they’re worth thinking about alongside the calculator’s result.
- Security of tenure. Many rented houses are owned by small landlords who may decide to sell or move back in. A renter in a house can be asked to leave at the end of a lease more easily than you might expect. Owning removes that risk.
- Space and changes. Owners can add a bedroom, finish a basement or put in a fence for a dog. Renters usually need permission for even small changes.
- Schools and neighborhood. Families often buy to lock in a school district. If that’s your priority, the “cost” of renting includes the risk of having to move schools.
- Time and effort. Owning a house means managing contractors, yard work and emergencies yourself. Some people enjoy this. Others would rather pay a landlord to deal with it.
- Concentration risk. A house is usually the biggest single asset a household owns. If the local economy weakens, both your job and your home’s value can suffer together.
None of these has a price in the calculator, but for many buyers they matter as much as a $40,000 difference in net worth either way.
Should I rent or buy a house? A checklist
- Comparable rent: have you checked single-family rentals of the same size in the same area?
- Property tax: have you used the rate the house will pay after reassessment?
- Inspection: do you know how old the roof, HVAC system, water heater and windows are? Have you raised maintenance if they’re near the end of their life?
- Insurance: have you got a real quote, including flood cover if needed?
- Reserves: after closing, will you still have 3 to 6 months of expenses plus a repair fund?
- Stay length: are you fairly confident you’ll stay at least 7 to 10 years?
- Rate: have you used today’s rate? Freddie Mac’s Primary Mortgage Market Survey put the 30-year average at 7.18% in early November 2026. If you’d only buy because you expect to refinance, test the result at the current rate too.
If you can tick most of these and the result still favours buying, you have a strong case. If buying only wins with optimistic assumptions, keep renting and keep saving.
Related tools and guides
- Is it better to rent or buy a house?: the full decision guide.
- Buying a house vs renting an apartment: when the homes you’re comparing aren’t like for like.
- United States rent vs buy calculator: US presets and notes.
- Rent vs buy condo calculator: if you’re also considering a condo.
- Global rent vs buy calculator: start from any country’s defaults.
This calculator is an educational estimate, not financial advice.
Frequently asked questions
Should I rent or buy a house right now?
Run your own numbers instead of relying on the headlines. In late 2026, US mortgage rates above 7% make buying harder to justify on cost unless the house is cheap relative to rent, or you plan to stay for many years. If a comparable house rents for more than the calculator's break-even rent, buying is the better financial choice even at today's rates.
How much should I budget for maintaining a house?
A common starting point is 1% of the home's value a year, about $4,200 on a $420,000 house, rising as the value rises. Older houses, large lots and harsh climates often need 1.5% to 2%. On our defaults, raising maintenance from 1% to 1.5% widens renting's 10-year lead from about $41,000 to about $76,000, so this input deserves a realistic figure.
Is it better to rent or buy a house if I might move in five years?
Usually it's better to rent, unless the house is cheap relative to rent. On our US defaults, buying a house would need comparable rent of about $2,620 a month to break even over five years, compared with about $2,310 over ten. Selling costs of around 6% take a large share of the equity you'd build in a short stay.
Do I need 20% down to buy a house?
No, but below 20% most conventional US loans add private mortgage insurance, which the calculator doesn't model separately. With 10% down on our defaults, the payment rises to about $2,340 and renting still leads by around $39,000 over 10 years, before PMI. Add your PMI quote to the insurance input for a fair picture.
How is renting a house different from renting an apartment for this comparison?
Compare like with like. If you'd buy a three-bedroom house, enter the rent for a similar three-bedroom house nearby, not your current apartment rent. Single-family rentals usually cost more than apartments in the same area, which can make buying look better than it would against a cheaper apartment.
Does the calculator account for the mortgage interest tax deduction?
No. It only helps if you itemize, and many US households take the standard deduction. If you will itemize, owning comes out slightly better than the result shows.