Not a complete model
A full rent-versus-buy analysis usually includes taxes, insurance, maintenance, transaction costs, investment returns on down payment, inflation and local market risks.
Example
Renting at 1,800 per month for 7 years costs 151,200 before rent increases. Buying adds down payment, mortgage payments and owner costs, then depends heavily on home value and sale costs.
Common mistakes
Do not compare monthly rent only with mortgage principal and interest. Ownership costs often include taxes, insurance, maintenance, HOA dues and transaction costs.
Limitations
This is not financial advice or a loan approval estimate. It does not fully model taxes, opportunity cost, selling fees, rent inflation or local housing risk.
Last reviewed: 2026-05-17