Rent vs. Buy Calculator (Texas)
Is it cheaper to rent or buy in Texas? Compare the true cost of owning — mortgage, county property tax, insurance, maintenance and selling costs — against renting with rent increases, and see the year buying pulls ahead.
Buying
Renting
Renting vs buying in Texas: what actually matters
The honest answer depends on how long you'll stay. Buying front-loads costs — down payment, closing costs, and the roughly 4–6% it takes to sell later — while renting front-loads nothing but rises every year. This calculator counts all of it: your full Texas payment with county property tax and insurance, maintenance at about 1% of value per year, HOA dues, appreciation, the equity you recover at sale, and what your down payment would have earned had you invested it instead.
The break-even year
In most Texas metros, with 3% appreciation and 3% rent growth, buying pulls ahead of renting somewhere between year 4 and year 7. Lower selling costs move that earlier — which is why the calculator assumes you'd sell with KAT Realty's $5,999 flat listing fee rather than 3%. High HOA dues, a short stay, or flat appreciation push it later.
What this doesn't count
Tax deductions for mortgage interest (most Texas households take the standard deduction now), the intangible value of stability or flexibility, and rent-controlled situations. Treat the result as a financial baseline, then weigh your own plans.
Frequently asked questions
Is it cheaper to rent or buy in Austin?
With Austin's median near $430,000 and rents around $1,800–$2,500, buying usually breaks even in 5–7 years at today's rates. Enter your own numbers above — the county tax rate and your expected stay drive the answer.
What appreciation rate should I use?
Long-run Texas home appreciation has averaged 3–4% per year, but it varies widely by year and neighborhood. Try 2% and 4% to see the range.
Why does the calculator subtract investment growth from renting?
If you rent, the down payment stays in your pocket and can earn a return. Counting that keeps the comparison fair.
Does it include maintenance?
Yes — 1% of home value per year by default, which is a common planning figure for Texas homes. Adjust for age and condition.
How do selling costs affect the answer?
Selling is the biggest hidden cost of owning. A $5,999 flat listing fee instead of 3% shortens the break-even by roughly a year on a typical Texas home.
Related calculators
KAT Realty Group is a full-service flat fee real estate service: buyer representation for $4,999 and seller listing for $5,999, serving Austin, Dallas–Fort Worth, Houston, San Antonio and all of Texas. See all calculators or request a consultation.