Rent $3,500/mo vs Buy a $300K Home
A side-by-side financial comparison of renting at $3,500/month vs buying a $300,000 home with 20% down over 5 to 30 years.
Monthly Rent
$3,500
+ 3%/yr increases
Monthly Ownership
$2,189
P&I + tax + ins + maint
Monthly Ownership Breakdown
Principal & Interest
$1,577
Property Tax (1.1%)
$275
Insurance
$88
Maintenance (1%)
$250
Down Payment Required (20%)
$60,000
Wealth Comparison Over Time
| Year | Renter Wealth* | Home Equity | Winner | Difference |
|---|---|---|---|---|
| Year 5 | $88,160 | $130,695 | Buy | $42,535 |
| Year 7 | $102,829 | $163,359 | Buy | $60,529 |
| Year 10 | $129,535 | $217,840 | Buy | $88,304 |
| Year 15 | $190,330 | $325,824 | Buy | $135,493 |
| Year 20 | $279,657 | $460,391 | Buy | $180,733 |
| Year 30 | $603,759 | $842,038 | Buy | $238,279 |
* Renter wealth = down payment invested at 8% return. Home equity = home value (3.5% appreciation) minus remaining mortgage.
Analysis: Renting at $3,500 vs Buying at $300K
At $2,189/month, owning this $300K home is actually cheaper than your $3,500/month rent while also building equity. This is a strong case for buying if you plan to stay for at least 5 years.
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.