Houston Rent vs. Buy Calculator
Should you rent or buy in Houston? Enter your numbers to see the true cost comparison — including mortgage, taxes, insurance, maintenance, and the opportunity cost of your down payment.
Your Numbers
Median for 77002: $286,100
Median for 77002: $1,860
$57,220
Renting is better after 7 years
Investing the difference would give you $146,929.027, exceeding the $156,037.905 in home equity you'd build.
📍 Break-even point: Year 5
Monthly Buying Cost
$2,417
Monthly Renting Cost
$1,860
Assumed annual rent increase: 3%
By year 7: ~$2,288/mo
Renters insurance not included (~$15-$25/mo)
7-Year Wealth Comparison
If You Buy
If You Rent
Assumptions Used
Property tax rate: 2.23% (Harris County avg)
Home insurance: 0.65% of home value/yr
PMI (if <20% down): 0.55% of loan/yr
Maintenance: 1% of home value/yr
Home appreciation: 3.5%/yr
Investment return: 7%/yr (S&P 500 avg)
Rent increase: 3%/yr
Closing costs: 3% | Selling costs: 6%
Frequently Asked Questions
Is it cheaper to rent or buy in Houston?
Houston is one of the most affordable major metros for buying. With no state income tax and median home values around $245K, buying often becomes cheaper than renting within 3–5 years. Use the calculator above with your specific zip code to find out.
What is the property tax rate in Houston?
Houston's effective property tax rate averages about 2.23% in Harris County. While higher than the national average (~1.1%), this is offset by the absence of a state income tax.
How much do I need for a down payment in Houston?
Conventional loans require 3–20% down. FHA loans allow as low as 3.5%. Putting 20% down eliminates PMI, which saves $50–$200/month on a typical Houston home.
What about flood insurance?
Many Houston zip codes are in FEMA flood zones. Flood insurance adds $500–$3,000/year depending on the zone. Check our zip code pages for flood risk data and factor it into your buying costs.