Rent vs. Buy: $250K Home, 5% Down, vs. $1,200 Rent
Calculate whether buying a $250,000 starter home with 5% down at 6.5% beats renting at $1,200/month over 10 years.
How to use this tool
- Enter home price, down payment, mortgage interest rate, current monthly rent, annual home appreciation, annual rent increase and years to compare in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your buy scenario equity and the full breakdown beneath it.
A $250,000 starter home with 5% down is within reach for many first-time buyers — see if it beats renting at $1,200 a month.
Frequently asked questions
- What costs are not included?
- This model excludes property taxes, maintenance (~1% of home value/year), HOA fees, insurance, and transaction costs. Add these to the buy side for a more complete comparison.
- When does buying always win?
- In high-appreciation markets with long time horizons, buying typically dominates because leverage amplifies gains. Renting wins in stagnant markets when renters invest the difference aggressively.