Should You Rent or Buy a Home in 2026? Here's the Math

If you are trying to figure out whether to rent or buy right now, you are probably getting advice from everyone in your life. Some people will tell you that renting is throwing money away. Others will tell you the market is too expensive and you should wait. Most of them have strong opinions and none of them have run your specific numbers.

Let me actually run the math with you.

Run your rent vs. buy numbers: worthitcalculators.com/rent-vs-buy

The thing most people get wrong from the start

When people compare renting to buying, they usually compare their rent to the mortgage payment. That comparison is missing most of the picture.

The real monthly cost of owning a home includes the mortgage, yes. It also includes property taxes, homeowner’s insurance, private mortgage insurance if your down payment is under 20%, and maintenance. The national average for property taxes is about 1.1% of home value per year. Maintenance is commonly estimated at 1% of home value annually, though it can be higher in older homes. Insurance typically runs $100 to $200 a month for a median-priced home.

Here is what that looks like on a $350,000 home with 10% down at 6.23%:

Mortgage payment: roughly $1,946 per month
Property taxes: roughly $321 per month
Insurance: roughly $150 per month
PMI: roughly $175 per month
Maintenance reserve: roughly $292 per month
Total: roughly $2,884 per month

If your rent is $1,800 a month, owning costs about $1,084 more every single month, before you even factor in the $35,000 down payment and closing costs you put in on day one.

That does not mean buying is wrong. It means the comparison is more complex than it looks at first.

How the calculator works

The Rent vs. Buy calculator models both scenarios over however long you plan to stay. For buying, it accounts for your mortgage, all ownership costs, equity built through principal paydown, and estimated home appreciation. For renting, it accounts for your rent, annual rent increases, and the opportunity cost of your down payment sitting invested elsewhere instead.

The Worth It Score tells you whether buying makes financial sense over your specific timeline. A score over 70 means buying wins clearly. Under 30 means renting is likely the smarter financial move right now.

Three situations that land in very different places

Scenario 1: The median market, medium timeline

Home price: $320,000. Down payment: 10%. Mortgage rate: 6.23%. Current rent: $1,600 a month. Plan to stay: 7 years.

All-in monthly cost to own: roughly $2,636. Monthly rent: $1,600. That is over $1,000 more per month to own.

Over 7 years, you would build roughly $45,000 in equity through principal paydown. At 3% annual appreciation, the home would be worth about $393,000 when you sell. The numbers are genuinely close.

Worth It Score: 58. This is the “it depends” scenario. If you are planning to stay 10 years or more, buying pulls ahead clearly. If 7 years is actually 5, renting starts winning.

Scenario 2: The high-cost city

Home price: $750,000. Down payment: 20%. Mortgage rate: 6.23%. Current rent: $2,800 a month. Plan to stay: 4 years.

All-in monthly cost to own: roughly $5,200. Monthly rent: $2,800. That is nearly double the rent.

Even with home appreciation and equity building, the transaction costs alone — realtor fees, closing costs, moving — eat most of the upside over a 4-year timeline. Short timelines in expensive markets are almost always a renting situation.

Worth It Score: 19. Renting is the financially smarter move here. Full stop.

Scenario 3: The long-term buyer in the midwest

Home price: $230,000. Down payment: 20%. Mortgage rate: 6.23%. Current rent: $1,400 a month. Plan to stay: 15 years.

All-in monthly cost to own: roughly $1,628. Monthly rent: $1,400. That is only $228 more per month to own.

Over 15 years, you pay off a significant portion of the mortgage. The home, appreciating at even 2.5% a year, would be worth around $330,000. Meanwhile, rent at a modest 2% annual increase would be over $1,900 a month by year 15.

Worth It Score: 83. Buying wins by a clear margin. Time in the home is the biggest factor in this calculation.

A few things most people overlook

The opportunity cost of your down payment. A $60,000 down payment invested in a diversified index fund at 7% average annual return would be worth roughly $118,000 in 10 years. That is real money you are tying up. It belongs in the calculation.

How long you will actually stay. People consistently overestimate this. Buying almost always wins at 10 years or more. Renting often wins at under 5. The break-even point varies by market but this is the single most important input.

The way ownership costs add up. I listed the numbers above but they still surprise people when they show up month after month. Maintenance is not a fixed cost. Some years it is nothing. Some years it is $8,000. The 1% estimate is an average over time.

The emotional side is real too. Owning a home gives you stability, the ability to customize your space, roots in a community. Those things are worth something that does not show up in the math. The calculator handles the financial question. You handle the rest.

Frequently asked questions

Is it better to rent or buy in 2026?

It depends on your local market, how long you plan to stay, and your actual all-in monthly costs versus what you are paying in rent. Nationally, buying tends to make more financial sense after about 5 to 7 years. In expensive coastal cities, that break-even can stretch well past 10 years.

What is the break-even point between renting and buying?

The break-even point is how long you need to stay in the home before buying saves more money than renting would have. It varies significantly by market. The calculator will show you your specific number.

Is a 6% mortgage rate too high to buy?

Not necessarily. At 6.23%, which is the Freddie Mac 30-year fixed average as of April 2026, buying still makes clear financial sense in many mid-cost markets for buyers planning to stay 7 years or more. The rate matters less in isolation than the full monthly cost comparison to what you would pay in rent.

Does renting really throw money away?

No. Rent pays for housing, which is a real thing you need. The question is whether owning that same housing would leave you better off financially. In many markets and timelines, renting is the smarter financial move, especially when you factor in opportunity cost, maintenance, and transaction costs. The math, not the conventional wisdom, should drive the decision.

What I want you to take from this

There is no universally right answer here. The three scenarios above scored 19, 58, and 83, all using real 2026 numbers. Same market conditions, completely different conclusions based on situation.

What I can tell you is that the decision deserves more than a gut check or someone else’s opinion. Your numbers are your numbers. Run them.

Get your Worth It Score: worthitcalculators.com/rent-vs-buy

If buying comes out ahead in your scenario, getting pre-qualified is the fastest way to understand your actual purchasing power. Mortgage Research Center connects you with lenders and lets you compare real rate offers before you make an offer on a home.*

Run the full rent vs buy comparison with your actual numbers: Rent vs Buy Calculator