TL;DR
We analyzed 50 of the largest U.S. metro areas using current median home prices, median rents, mortgage rates near 6%, property taxes, and insurance costs to determine where buying beats renting on a monthly cost basis in 2026. The verdict: buying is cheaper than renting in roughly 22 metros, concentrated in the Midwest, South, and parts of the Sun Belt where home prices remain affordable relative to rents. Meanwhile, expensive coastal markets like San Jose, San Francisco, and Seattle still strongly favor renting. Here are the key takeaways:
- Mortgage rates near 6% have meaningfully improved buying power compared to the 7%+ rates of 2023-2024
- Cities like Pittsburgh, Cleveland, Detroit, and Chicago offer the strongest buy signals with break-even timelines under 2 years
- Coastal and tech-hub metros still carry monthly buy costs 40-130% above rent, making renting the smarter short-term choice
- Property taxes and insurance vary dramatically by market and can shift the math by $200-$800/month
- Your personal break-even depends on how long you plan to stay, local appreciation trends, and your opportunity cost on a down payment
How We Calculated Rent vs. Buy Costs Across 50 Cities
Before diving into the city-by-city data, it is important to understand the assumptions behind these numbers. Every rent vs. buy comparison is only as useful as its methodology, and we want you to see exactly how we arrived at each verdict.
Our Assumptions
Mortgage rate: 6% on a 30-year fixed (reflecting current Freddie Mac PMMS data showing rates averaging 6.01% as of February 19, 2026)
Down payment: 20% (no PMI)
Property taxes: Metro-specific effective rates sourced from ATTOM Data Solutions and Census Bureau ACS data. National average is approximately 0.86%.
Homeowners insurance: State-specific annual premiums based on Bankrate/Quadrant Information Services 2025 data, proportionally adjusted to home value.
Median home prices: Zillow Home Value Index (ZHVI) mid-tier data, adjusted for 2025-2026 price trends per Zillow forecasts.
Median rents: Zillow Observed Rent Index (ZORI) and Apartment List data, reflecting current asking rents.
Monthly buy cost = Principal + Interest + Property Taxes + Insurance (PITI). Does not include HOA fees, maintenance, or closing costs.
Break-even calculation: Estimates how many years of ownership are needed before total buy costs (including the opportunity cost of the down payment at 5% annual return) equal total rent costs (assuming 3% annual rent increases and 2% annual home appreciation).
What is not included: Tax benefits of mortgage interest deduction, equity buildup, maintenance costs (typically 1-2% of home value annually), or closing costs. These factors generally favor buying over longer timelines but are excluded to keep the comparison straightforward.
This methodology aligns with approaches used by Bankrate, Zillow Research, and the Empower personal finance team in their own rent-vs.-buy analyses. For a more personalized calculation that incorporates your specific income, savings, and timeline, use our companion Renting vs. Buying Analysis and Calculator.
Found Your City in the "Buy" Column?
EffectiveAgents analyzes performance data across 19,000+ U.S. cities to match you with top-performing agents who know your local market inside and out. A great agent can save you thousands on your purchase price.
Find a Top Agent in Your CityThe Complete Rent vs. Buy Breakdown: 50 U.S. Metros
The table below ranks all 50 metros by the monthly cost difference between buying and renting. A negative number means buying is cheaper. A positive number means renting saves you money each month. Scroll horizontally on mobile to see all columns.
| Metro ▲▼ | Median Home Price ▲▼ | Median Rent ▲▼ | Monthly Buy (PITI) ▲▼ | Cost Diff (Buy - Rent) ▲▼ | Break-Even (Yrs) ▲▼ | Verdict |
|---|---|---|---|---|---|---|
| Pittsburgh, PA | $198,000 | $1,530 | $1,200 | -$330 | 1.5 | Strong Buy |
| Cleveland, OH | $196,000 | $1,500 | $1,240 | -$260 | 1.6 | Strong Buy |
| Detroit, MI | $228,000 | $1,535 | $1,380 | -$155 | 1.8 | Strong Buy |
| Chicago, IL | $310,000 | $2,250 | $1,990 | -$260 | 1.9 | Strong Buy |
| Memphis, TN | $210,000 | $1,510 | $1,280 | -$230 | 1.9 | Strong Buy |
| Birmingham, AL | $218,000 | $1,470 | $1,290 | -$180 | 2.0 | Strong Buy |
| Oklahoma City, OK | $210,000 | $1,400 | $1,310 | -$90 | 2.1 | Strong Buy |
| St. Louis, MO | $228,000 | $1,480 | $1,400 | -$80 | 2.2 | Strong Buy |
| Indianapolis, IN | $260,000 | $1,620 | $1,560 | -$60 | 2.3 | Strong Buy |
| Louisville, KY | $242,000 | $1,480 | $1,450 | -$30 | 2.4 | Strong Buy |
| Tampa, FL | $350,000 | $2,160 | $2,100 | -$60 | 2.8 | Lean Buy |
| Columbus, OH | $278,000 | $1,580 | $1,720 | $140 | 3.1 | Lean Buy |
| Cincinnati, OH | $265,000 | $1,510 | $1,650 | $140 | 3.0 | Lean Buy |
| Miami, FL | $430,000 | $2,780 | $2,700 | -$80 | 3.2 | Lean Buy |
| Kansas City, MO | $280,000 | $1,540 | $1,680 | $140 | 3.4 | Lean Buy |
| San Antonio, TX | $278,000 | $1,530 | $1,690 | $160 | 3.5 | Lean Buy |
| Jacksonville, FL | $335,000 | $1,830 | $2,060 | $230 | 3.6 | Lean Buy |
| Philadelphia, PA | $330,000 | $1,960 | $2,060 | $100 | 3.3 | Lean Buy |
| Houston, TX | $305,000 | $1,680 | $1,920 | $240 | 3.8 | Lean Buy |
| Atlanta, GA | $370,000 | $2,020 | $2,150 | $130 | 3.7 | Lean Buy |
| Orlando, FL | $365,000 | $2,010 | $2,230 | $220 | 3.9 | Lean Buy |
| Charlotte, NC | $360,000 | $1,880 | $2,100 | $220 | 4.0 | Lean Buy |
| Dallas-Fort Worth, TX | $360,000 | $1,880 | $2,200 | $320 | 4.5 | Toss-Up |
| Nashville, TN | $420,000 | $2,050 | $2,460 | $410 | 4.6 | Toss-Up |
| Milwaukee, WI | $298,000 | $1,500 | $1,870 | $370 | 4.5 | Toss-Up |
| Richmond, VA | $340,000 | $1,680 | $2,040 | $360 | 4.4 | Toss-Up |
| Las Vegas, NV | $395,000 | $1,790 | $2,280 | $490 | 4.8 | Toss-Up |
| Phoenix, AZ | $410,000 | $1,800 | $2,310 | $510 | 4.9 | Toss-Up |
| Raleigh, NC | $400,000 | $1,860 | $2,310 | $450 | 4.7 | Toss-Up |
| Minneapolis, MN | $350,000 | $1,720 | $2,190 | $470 | 4.8 | Toss-Up |
| Austin, TX | $410,000 | $1,800 | $2,510 | $710 | 5.6 | Toss-Up |
| Hartford, CT | $330,000 | $1,720 | $2,200 | $480 | 4.9 | Toss-Up |
| Virginia Beach, VA | $350,000 | $1,780 | $2,150 | $370 | 4.5 | Toss-Up |
| New Orleans, LA | $255,000 | $1,450 | $1,820 | $370 | 4.7 | Toss-Up |
| Sacramento, CA | $520,000 | $2,380 | $3,000 | $620 | 5.5 | Lean Rent |
| Baltimore, MD | $365,000 | $1,820 | $2,380 | $560 | 5.2 | Lean Rent |
| Riverside, CA | $530,000 | $2,340 | $3,050 | $710 | 5.8 | Lean Rent |
| Denver, CO | $540,000 | $2,030 | $3,100 | $1,070 | 6.3 | Lean Rent |
| Washington, DC | $530,000 | $2,290 | $3,120 | $830 | 5.9 | Lean Rent |
| Portland, OR | $500,000 | $1,890 | $2,860 | $970 | 6.1 | Lean Rent |
| Salt Lake City, UT | $510,000 | $1,770 | $2,870 | $1,100 | 6.5 | Lean Rent |
| Buffalo, NY | $240,000 | $1,380 | $1,740 | $360 | 5.1 | Lean Rent |
| Boston, MA | $650,000 | $3,210 | $3,840 | $630 | 5.7 | Lean Rent |
| New York, NY | $590,000 | $3,020 | $4,050 | $1,030 | 7.2 | Lean Rent |
| Seattle, WA | $700,000 | $2,330 | $3,980 | $1,650 | 8.5 | Lean Rent |
| Los Angeles, CA | $870,000 | $3,010 | $5,060 | $2,050 | 10.2 | Lean Rent |
| San Diego, CA | $850,000 | $3,110 | $4,920 | $1,810 | 9.8 | Lean Rent |
| San Francisco, CA | $1,050,000 | $3,220 | $5,950 | $2,730 | 12.5 | Lean Rent |
| San Jose, CA | $1,480,000 | $3,540 | $8,380 | $4,840 | 15.0+ | Lean Rent |
| Providence, RI | $430,000 | $2,050 | $2,850 | $800 | 5.9 | Lean Rent |
How to Read This Table
Cost Diff (Buy - Rent): A negative number means buying costs less per month than renting. A positive number means renting saves you money monthly. Break-Even: The approximate number of years before total ownership costs (factoring equity buildup and appreciation) fall below cumulative rent payments. Shorter is better for buyers. Data sources include Zillow Research, Federal Reserve Economic Data (FRED), and ATTOM Data Solutions.
Top 10 Best Cities to Buy Instead of Rent
These metros offer the clearest financial advantage for buyers. Monthly ownership costs are either lower than rent or close enough that the equity-building benefit makes the math overwhelmingly favor buying, even for short holding periods.
Why These Cities Favor Buying
The cities in the "Strong Buy" and "Lean Buy" tiers share several common traits. Home prices remain well below the national median, which keeps monthly principal and interest payments manageable. Many of these metros are in states with moderate property tax rates and reasonable insurance costs. Rents, meanwhile, have remained steady or even climbed as multifamily construction has lagged demand in these regions.
Strong Buy: Monthly Savings of $60+, Break-Even Under 2.5 Years
In these markets, buying is cheaper than renting almost immediately.
If you are renting in any of these metros and plan to stay for at least two years, the data strongly suggests that buying will save you money. The combination of low home prices, favorable tax environments, and steady rent growth means your equity starts working for you almost immediately. A qualified buyer's agent can help you navigate these markets and negotiate below asking price, improving your return even further.
Top 10 Cities Where Renting Still Wins
On the other end of the spectrum, these metros carry such high home prices that monthly PITI payments far exceed what renters pay. The break-even timelines stretch to 7-15+ years, meaning you would need to stay in the home for nearly a decade before ownership outperforms renting from a pure cost perspective.
Lean Rent: Monthly Savings of $600+, Break-Even Beyond 5.5 Years
In these markets, renting preserves cash flow and investment flexibility.
In these markets, renting does not mean you are throwing money away. You are preserving cash that can be invested, maintaining flexibility, and avoiding the substantial carrying costs of high-priced real estate. That said, if you are committed to staying long-term (7+ years), buying can still build meaningful wealth through appreciation and equity, particularly in metros with strong economic fundamentals.
Planning to Buy? Match With a Top Agent in Your Market
Whether your city shows "Strong Buy" or "Lean Buy," the right agent matters. EffectiveAgents has matched buyers with top-performing agents across 19,000+ cities, resulting in $2.1B+ in client savings and a 98% satisfaction rate.
Get Matched With a Vetted AgentThe Toss-Up Cities: Where the Decision Gets Personal
Twelve metros in our analysis fall into the "Toss-Up" zone, where monthly buy costs exceed rent by $300-$700, and break-even timelines land between 4 and 6 years. In these cities, the rent vs. buy decision hinges entirely on your personal circumstances.
What Pushes a Toss-Up City Toward "Buy"
If you plan to stay 5+ years, have stable employment, and can comfortably afford the higher monthly PITI without stretching past 28% of your gross income, buying in a Toss-Up city makes sense. Your equity buildup and likely home appreciation will outpace the higher monthly costs over time. Cities like Dallas-Fort Worth, Nashville, and Raleigh have strong job growth and population inflows that support long-term appreciation. You can learn more about how interest rate changes affect your buying power to model different rate scenarios.
What Pushes a Toss-Up City Toward "Rent"
If your timeline is under 4 years, if your job situation is uncertain, or if the higher monthly payment would leave you with little savings buffer, renting is the safer choice. In metros like Austin and Las Vegas, where home values have recently declined (Austin is down 6% YoY, per Zillow), buying also carries near-term price risk that could extend your break-even period.
The "Hidden" Factors That Shift the Math
Our table captures PITI, but several factors can materially change your personal calculation. Property tax reassessment can increase your tax bill after purchase if the assessed value jumps to market value. HOA fees add $200-$500/month in many condo and townhome markets. Maintenance costs (typically 1-2% of home value annually) are $0 for renters. On the flip side, mortgage interest deductions save itemizing homeowners 22-35% on interest payments, and equity buildup adds roughly $300-$600/month to your net worth in the early years of a mortgage at these rates. For a complete picture, learn about how property taxes work and what they mean for your monthly payment.
What Drives the Rent vs. Buy Gap by City
The difference between a "Strong Buy" and a "Lean Rent" city is not just about home prices. Four key variables create the divergence across markets, and understanding them will help you evaluate any city, even one not on this list.
Home Prices Relative to Local Incomes
The price-to-income ratio is the clearest indicator. In Pittsburgh, the median home costs roughly 2.5x the median household income. In San Jose, that ratio exceeds 10x. When homes are priced within 3-4x local incomes, monthly mortgage payments are manageable relative to rents that are also calibrated to what local workers can pay. When the price-to-income ratio stretches beyond 6x, ownership costs detach from rents and the gap widens dramatically.
Property Tax Rates Vary by 400%
According to ATTOM's 2024 property tax analysis, effective tax rates range from 0.33% in Hawaii to 1.87% in Illinois. On a $400,000 home, that is the difference between $110/month and $623/month. Property taxes alone can turn a borderline "buy" market into a "rent" market. States like Texas, New Jersey, and Illinois carry effective rates above 1.5%, which adds $500+ monthly to ownership costs even on moderately priced homes.
Insurance Costs Have Exploded in Select States
Average annual homeowners insurance premiums range from $632 in Hawaii to over $6,000 in Oklahoma and Nebraska, according to LendingTree analysis of 2024 data. Florida's rates, while declining from their 2023 peak, still average over $4,500 annually. Colorado has seen a 76.6% cumulative increase in insurance costs since 2019. These costs are invisible to renters (who pay $15-$30/month for renters insurance) but add $200-$500/month to ownership costs in high-risk states.
Rental Supply and Demand Shape Local Rents
Apartment List data shows that rents have declined year-over-year in 32 of the 54 largest metro areas, driven by a historic wave of multifamily construction that delivered over 600,000 new units in 2024 alone. Austin has seen rents drop 6.3% from their 2022 peak. Meanwhile, markets like Virginia Beach (up 5%) and the Bay Area (up 3-4%) are seeing rents climb due to constrained supply. Where rents are falling, the case for buying weakens. Where rents are rising, the case for buying strengthens, because today's PITI is locked in while rent keeps climbing.
Find Your City: What to Do With This Data
The table above provides a metro-level view, but real estate is local. Within any metro, specific neighborhoods, school districts, and property types can shift the math significantly. Here is how to use this data as a starting point for your own decision.
Step 1: Locate Your Metro in the Table
Find the verdict for your city. If it says "Strong Buy" or "Lean Buy," you have a strong case for ownership if your personal finances support it. If it says "Lean Rent," the burden of proof is on buying to make sense for your specific situation.
Step 2: Run Your Personal Numbers
Use the EffectiveAgents Rent vs. Buy Calculator to plug in your actual income, savings, credit score, and target neighborhood. The calculator adjusts for local property taxes, insurance, and expected appreciation to give you a personalized break-even timeline.
Step 3: Factor In Your Timeline and Goals
Even in a "Lean Rent" market, buying can make sense if you are committed to staying 10+ years and value the stability and forced savings of homeownership. Conversely, even in a "Strong Buy" market, renting makes sense if you are uncertain about your location for the next 2-3 years.
Step 4: Talk to a Local Expert
A top-performing buyer's agent can give you neighborhood-level insights that no national dataset captures: upcoming developments, school boundary changes, tax reassessment schedules, and negotiation opportunities. EffectiveAgents analyzes performance data across 19,000+ U.S. cities so you can find agents with the best track records in your specific market.
Ready to Make Your Move?
Find the Perfect Realtor Based on Their Actual Performance. EffectiveAgents connects you with vetted, top-performing agents in your city who have a proven track record of saving buyers money and closing deals efficiently.
Find a Top Agent Near YouThe Rent vs. Buy Outlook for the Rest of 2026
Several trends are converging that could shift the rent-vs.-buy math over the coming months, potentially moving cities between tiers.
Mortgage Rates May Stay Near 6%
The 30-year fixed rate averaged 6.01% as of February 19, 2026, per Freddie Mac, the lowest since September 2022. Fannie Mae projects rates will hover near 6% through the end of 2026, while the MBA forecasts rates near 6.1%. If rates dip into the mid-5% range, that would add roughly 5-8 more metros to the "buy" column by reducing monthly payments on a median-priced home by $100-$150.
Home Prices Are Expected to Rise Modestly
Zillow forecasts home values to grow 1.2-1.9% nationally in 2026, with gains concentrated in the Midwest and Northeast (where prices are already affordable) and continued softness in parts of the Sun Belt. This modest growth means buyers in affordable markets are unlikely to face rapidly rising prices, while renters in expensive markets may see some price relief.
Rental Supply Wave Is Cresting
After delivering over 600,000 multifamily units in 2024 and roughly 500,000 in 2025, new construction is slowing. Apartment List reports vacancy rates at 7.3% nationally, but projects this will tighten as starts decline. If rents stabilize and then resume climbing in 2027 and beyond, today's locked-in mortgage payments will look increasingly attractive compared to annual lease renewals.
More Cities Could Tip Toward Buying
Zillow projects that 20 of the 50 largest metros will be "affordable to buy in by the end of 2026, the most since 2022." This is driven by the combination of modest rate declines, slowing home price growth, and continued rent pressure in supply-constrained markets. Cities currently in the "Toss-Up" tier, like Dallas, Nashville, and Raleigh, are the most likely to shift toward buying if rates decline even slightly.
Frequently Asked Questions About Rent vs. Buy by City
Why is buying cheaper than renting in some cities but not others?
The rent vs. buy gap is driven by four key factors: home prices relative to local incomes, property tax rates (which vary from 0.33% to 1.87% across states), homeowners insurance costs (ranging from $632 to $6,000+ annually), and local rental supply and demand. Cities like Pittsburgh and Cleveland have low home prices, moderate taxes, and steady rents, making buying clearly cheaper. Coastal tech hubs like San Jose and San Francisco have extreme home prices that push monthly mortgage payments far above local rents, even though those rents are high in absolute terms.
How do property taxes change the rent vs. buy math?
Property taxes are one of the largest variables in the buy calculation and can swing the monthly cost by $200-$600 depending on the metro. For example, on a $400,000 home, annual property taxes range from about $1,320 in a low-tax state like Alabama (0.38% rate) to over $7,480 in a high-tax state like Illinois (1.87% rate). That is the difference between $110 and $623 per month added to your mortgage payment. Texas, New Jersey, Connecticut, and Illinois have among the highest rates, which is why some affordable-looking home prices in these states still result in high monthly ownership costs.
What cities have the fastest break-even for buyers?
The fastest break-even timelines are in Rust Belt and Midwest metros. Pittsburgh leads at approximately 1.5 years, followed by Cleveland (1.6 years), Detroit (1.8 years), Chicago (1.9 years), and Memphis (1.9 years). In these cities, monthly buy costs are lower than rent from day one, so you are saving money immediately while also building equity. The break-even calculation accounts for closing costs and the opportunity cost of your down payment, making these short timelines especially compelling.
Should I buy in a city where renting is cheaper short-term?
It depends on your timeline. In "Lean Rent" cities, the monthly cost premium of buying ranges from $600 to $4,800. However, over time, equity buildup, potential appreciation, and the fixed nature of your mortgage payment (while rents increase 3-5% annually) can make buying the better long-term financial decision. Generally, if you plan to stay 7+ years in a "Lean Rent" market, buying can still make financial sense. If your timeline is under 5 years, renting almost certainly wins in these expensive metros.
How does the current 6% mortgage rate compare to recent years for rent vs. buy?
The current 6% rate is significantly better for buyers than the 7%+ rates seen in late 2023 and much of 2024. On a $350,000 home with 20% down, the difference between a 7% and 6% rate is approximately $186 per month in principal and interest savings. This improvement has shifted several metros from the "Lean Rent" column into "Toss-Up" or "Lean Buy" territory. However, rates are still well above the sub-4% levels that 48% of current mortgage holders enjoy, which continues to limit existing inventory as homeowners are reluctant to give up their low rates.
Why do insurance costs vary so much between states?
Homeowners insurance rates are primarily driven by natural disaster risk, construction costs, and state regulatory environments. States prone to hurricanes (Florida, Louisiana), tornadoes (Oklahoma, Nebraska, Kansas), or wildfires (Colorado, California) face the highest premiums. Nebraska and Oklahoma average over $5,900 and $6,100 annually, while Hawaii averages just $632. Insurance costs have risen approximately 40% cumulatively across the U.S. since 2019, with some states seeing increases exceeding 70%. These rising costs are a significant and often overlooked factor that has tilted the rent-vs.-buy math toward renting in many disaster-prone markets.
Is the price-to-rent ratio a good way to decide whether to buy?
The price-to-rent ratio is a useful screening tool but should not be the sole factor. It is calculated by dividing the median home price by the annual median rent. A ratio below 15 generally favors buying, 15-20 is a gray zone, and above 20 favors renting. Cleveland has one of the lowest ratios nationally at 11.0, while San Jose has the highest at 37.6. However, the ratio does not account for property taxes, insurance, interest rates, or local appreciation trends, all of which can shift the actual monthly cost comparison significantly. The full PITI analysis in this article provides a more accurate picture.
How will falling rents in Sun Belt cities affect the rent vs. buy decision?
Falling rents in Sun Belt metros like Austin (down 6.3% YoY), Tampa, and other fast-growing Southern and Western markets make renting relatively more attractive in the short term. When rents drop, the monthly savings from renting increase, extending the break-even timeline for buyers. However, these rent declines are largely driven by a temporary surge in multifamily construction that is already slowing. As new supply diminishes in 2026-2027, rents are expected to stabilize and resume modest growth. Buyers who lock in now at current prices and near-6% rates may benefit as rents climb back up, though near-term price softness in these markets is also a consideration.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or real estate advice. The data presented uses metro-level medians and standardized assumptions that may not reflect your specific situation. Home prices, rents, property taxes, insurance costs, and mortgage rates change frequently. Always consult with a qualified real estate professional and financial advisor before making housing decisions. EffectiveAgents is not a lender, tax advisor, or insurance provider. Data sources include Zillow Research, Federal Reserve Economic Data (FRED), ATTOM Data Solutions, Apartment List, Bankrate, and the U.S. Census Bureau. All data was compiled using the most recent available figures as of February 2026.
