Rent vs. Buy in 2026: How to Run the Numbers Yourself

The first number you need is the "cost of money." As of January 15, 2026, the average 30-year fixed mortgage rate is 6.06% according to Freddie Mac.

Current trends suggest this range may persist. Waiting for rates to drop back to 3% is likely a strategy that will leave you renting forever. Instead, use a Mortgage Calculator to see what a 6.06% rate actually looks like for your budget.

The Reality Check: On a $400,000 loan, the difference between a 6% rate and a 7% rate is roughly $260/month. That is significant, but it's no longer the volatile swing we saw in 2024.

When comparing rent vs. buy, most people only look at the mortgage payment. This is a mistake. In 2026, the average annual cost of home maintenance has risen to $10,867 per year.

When you rent, your landlord pays for the new water heater. When you buy, you do. To get an accurate comparison:

• Take your estimated mortgage payment.
• Add 1% of the home's value annually for maintenance.
• Compare that total against your monthly rent.

If the rental cost is significantly lower, you might be better off renting and investing the difference. You can use an ROI Calculator to see how that "saved" money could grow in the stock market over 10 years versus locking it into home equity.

The strongest argument for buying isn't monthly savings—it's forced savings.

Even with rates at 6%, a portion of every mortgage payment goes toward paying down your principal. This is money you are paying to yourself, stored in the value of your home. Renters pay 100% interest (in the form of rent) with 0% equity return.

Projection: With median home prices forecast to grow modestly at 1% this year according to Redfin, your home acts as a hedge against inflation.

Action: Check your potential tax benefits. Mortgage interest is deductible if you itemize, though many buyers may find the new higher Standard Deduction more beneficial. A Paycheck Calculator can help you estimate if owning a home changes your take-home pay via tax adjustments.

There is no single "right" answer, but there is a right way to calculate it.

• Buy If: You plan to stay for 5 to 7 years. It takes time for home value growth to offset the high upfront costs of buying (such as closing costs and inspection fees). If you move sooner, you often walk away with less cash than you would have if you had rented. There are no guarantees, of course, but typically, keeping the home for 5-7 years is when one starts to see positive equity gains.
• Rent If: Your monthly rent is significantly lower than a comparable mortgage. Save the difference, invest what you can, and keep your flexibility.