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Rent vs Buy Calculator by City

Free rent vs buy calculator by city. Compare total housing costs of renting versus buying in major US cities including mortgage, taxes, maintenance, and opportunity cost.

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Rent vs Buy: How City Matters More Than You Think

The rent-vs-buy decision varies dramatically by city. In San Francisco, a median home costs $1.1 million while rent for a comparable place is $3,800/month. Buying requires a $110,000 down payment (10%) and monthly costs of $8,500+ (mortgage, tax, insurance, maintenance). The renter saves $4,700/month — invested at 7%, that grows to over $500,000 in 7 years. In SF, renting wins decisively for most people. In contrast, Columbus, OH has a $250,000 median home with $1,400 rent. Monthly buy cost is approximately $2,100 — closer to rent with the added benefit of building equity. In Columbus, buying typically wins after 3-4 years.

The 5% rule is a useful shortcut: multiply the home price by 5%, divide by 12. If monthly rent is less than this number, renting is likely cheaper. SF: $1.1M × 5% ÷ 12 = $4,583. Since rent of $3,800 is below this, renting wins. Columbus: $250K × 5% ÷ 12 = $1,042. Rent of $1,400 exceeds this, so buying has an edge. Compare your options with our General Rent vs Buy Calculator and Affordability Calculator.

People Also Ask

Is it better to rent or buy in an expensive city?
In high-cost cities like SF, NYC, and LA, renting is often financially better because the price-to-rent ratio strongly favors renting. The monthly savings invested in index funds typically outperforms home equity growth in these markets.
How long should I plan to stay to make buying worth it?
Generally 5-7 years minimum to recoup closing costs and build equity. In expensive markets, the breakeven period can be 10+ years. In affordable markets, buying can pay off in 3-4 years.
Does the 5% rule work for rent vs buy?
The 5% rule is a useful shortcut: multiply home value by 5%, divide by 12. If your rent is below this number, renting is likely cheaper. Above it, buying has an edge. It accounts for opportunity cost, property tax, and maintenance.
Should I rent and invest the difference?
If monthly rent is significantly cheaper than owning (common in expensive cities), investing the savings in index funds often produces better returns than home equity appreciation. The key is actually investing the savings, not spending them.

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