Rent $1,000/mo vs Buy a $800K Home
A side-by-side financial comparison of renting at $1,000/month vs buying a $800,000 home with 20% down over 5 to 30 years.
Monthly Rent
$1,000
+ 3%/yr increases
Monthly Ownership
$5,838
P&I + tax + ins + maint
Monthly Ownership Breakdown
Principal & Interest
$4,204
Property Tax (1.1%)
$733
Insurance
$233
Maintenance (1%)
$667
Down Payment Required (20%)
$160,000
Wealth Comparison Over Time
| Year | Renter Wealth* | Home Equity | Winner | Difference |
|---|---|---|---|---|
| Year 5 | $235,092 | $348,519 | Buy | $113,426 |
| Year 7 | $274,212 | $435,623 | Buy | $161,411 |
| Year 10 | $345,428 | $580,905 | Buy | $235,477 |
| Year 15 | $507,547 | $868,863 | Buy | $361,316 |
| Year 20 | $745,753 | $1,227,709 | Buy | $481,956 |
| Year 30 | $1,610,025 | $2,245,435 | Buy | $635,410 |
* Renter wealth = down payment invested at 8% return. Home equity = home value (3.5% appreciation) minus remaining mortgage.
Analysis: Renting at $1,000 vs Buying at $800K
At $5,838/month, owning this $800K home costs significantly more than your $1,000/month rent. However, a portion of each mortgage payment builds equity, and the home is expected to appreciate at 3.5%/year.
Based on these assumptions, buying becomes the better financial move after about 5 years. If you plan to stay shorter than that, renting is more cost-effective. For a personalized analysis, use our mortgage calculator or explore other price points below.