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Rent vs Buy in 2026: Break-Even Checklist for Homeowners and First-Time Buyers

·2 min read
real estatehousingmortgagehomeownership

The rent vs buy decision is not about guesses or headlines. It is about your timeline, your monthly costs, and your alternative uses for cash. If you run the numbers honestly, the answer is usually clear.

The Three Inputs That Matter Most

  • Time horizon. The longer you stay, the more buying can make sense.
  • All-in monthly cost. Mortgage, taxes, insurance, HOA, and maintenance.
  • Opportunity cost. What your down payment could earn elsewhere.

Use the Housing Decision Calculator to compare rent vs buy with realistic inputs.

Break-Even Checklist

Use this checklist before you make a decision:

  1. Estimate your full monthly owner cost with the Mortgage Calculator.
  2. Add property taxes, insurance, HOA, and maintenance to the monthly total.
  3. Choose a realistic stay length and calculate break-even.
  4. Compare your down payment to other goals like investing or emergency savings.
  5. If you are itemizing, estimate the tax impact with the Tax Calculator.

When Renting Wins

Renting can be the better choice when:

  • You expect to move within a few years
  • Your housing market has high transaction costs
  • Your down payment would drain your emergency fund

When Buying Wins

Buying can make sense when:

  • You plan to stay long enough to pass the break-even point
  • Your monthly owner cost is close to rent
  • You value stability and long-term control of your housing costs

Related Tools and Guides

The best rent vs buy decision is a math decision. Run the numbers, then decide with confidence.

Related tools

Rent vs buy calculator
Compare renting versus buying with full cost breakdowns.
Housing decision tool
Compare keep, sell, rent, or buy scenarios.
Wealth Planner
Track net worth, goals, and launch tools with your data.

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