Renting vs. Buying a Home in 2026: A City-by-City Guide
Whether renting or buying makes more financial sense depends heavily on where you live. A 20% down payment in San Francisco buys a very different financial outcome than the same percentage in Indianapolis or San Antonio. This calculator models 22 of the largest US metropolitan areas, each with its own median price, typical rent, property-tax rate, and HOA norms — plus neighborhood presets so you can compare a specific district rather than a citywide average.
What the Calculator Accounts For
- Mortgage interest from a true month-by-month amortization schedule.
- Property taxes applied to the home's appreciating value each year.
- HOA and condo fees — a major recurring cost in dense metros.
- Maintenance, closing costs, and selling costs — the friction of ownership.
- Home equity — principal paid down plus appreciation, net of selling costs.
- Tax benefits — an estimate of the mortgage-interest and property-tax deduction.
- Opportunity cost — the market return forgone by tying cash into a down payment.
High-Tax vs. Low-Tax Metros
Property-tax rates vary dramatically across US cities. Texas metros such as Houston, Dallas, San Antonio, Austin and Fort Worth carry some of the highest effective property taxes in the country, often well above 1.5%, because the state has no income tax and funds services through property levies. California cities benefit from Proposition 13, which caps assessed-value growth at 2% per year. Coastal metros tend to have lower tax rates but far higher prices, which shifts the math toward longer break-even horizons.
How to Read Your Break-Even Year
The break-even year is the point at which the cumulative net cost of buying drops below the cumulative cost of renting. If you expect to move before that year, renting is usually the stronger financial choice; if you plan to stay well beyond it, buying typically wins. These figures are estimates for educational purposes and are not financial, tax, or legal advice — always consult a qualified professional.