Rent vs. buyShould you rent or buy?
Compare the true cost of buying — mortgage, taxes, insurance, upkeep, minus the equity you build — against renting and investing the difference. See the year buying breaks even.
Pre-filled with today’s posted 30-Year Fixed: 7.250% rate / 7.389% APR as of Oct 8, 10:25 AM. See today’s rates. Change it to match your quote.
Use the rent for a home like the one you would buy, not your current apartment. Comparing a house to a smaller rental makes renting look cheaper than it is.
St. Louis area home prices have risen about 4.4% a year since 1976, 3.8% a year over the last 30 years and 2.9% a year over the last 20, a stretch that includes the 2008 downturn (FHFA House Price Index, St. Louis MO-IL metro, through Q2 2026). The 3% default sits at the low end of that range. Past growth does not guarantee future growth.
Only matters if you sell at the end. Agent compensation is negotiable and set between you and your agent, so it is left blank. Enter what you expect to pay and the comparison updates.
Rent vs. buy questions, answered
Is it better to rent or buy in St. Louis?
It depends mostly on how long you plan to stay. Buying has large upfront costs, so it takes a few years of building equity to come out ahead of renting. This analyzer finds your personal breakeven year based on the price, your rate, rent, and how long you stay. Because St. Louis home prices are moderate relative to rents, buying often breaks even faster here than in high-cost coastal markets.
What is the breakeven point in rent vs. buy?
It is the year when the cumulative cost of buying drops below the cumulative cost of renting. The calculator adds up everything a buyer spends (down payment, closing costs, mortgage, taxes, insurance, upkeep) and subtracts the equity they build, then compares that to what a renter spends on rent minus the investment return they could earn on the cash a buyer tied up. Before the breakeven year, renting is cheaper; after it, buying is.
How much equity do you build by owning?
Equity comes from three places: your down payment, the loan balance you pay off with each payment, and any growth in the value of the home. The analyzer shows all three for the number of years you plan to stay, next to what a renter would have if they invested the same upfront cash instead. A monthly payment that is higher than rent can still leave an owner with more at the end, because part of every payment comes back as equity.
Does buying always beat renting?
No. If you sell before your breakeven year, renting usually wins because you never recover the upfront buying and selling costs. Buying tends to win when you stay long enough, when rents are rising quickly, or when the home appreciates. The right answer is personal, which is why this tool asks how long you plan to stay.
What costs does buying include beyond the mortgage?
A realistic comparison includes property taxes, homeowners insurance, ongoing maintenance (often about 1% of the home value per year), any HOA dues, closing costs to buy (roughly 2-3%), and the costs of selling when you eventually sell, including any agent compensation you agree to pay, which is negotiable. This calculator includes all of these so the comparison is fair.
How long do I need to stay for buying to pay off?
For many St. Louis buyers the breakeven lands somewhere around three to seven years, but it varies with your rate, down payment, rent, and assumptions about appreciation. Enter your own numbers above to see your specific breakeven year.
See where you can afford in St. Louis → · St. Louis neighborhood guides → · Estimate your full mortgage payment → · Buying a rental? Investment ROI → · Get pre-approved →
Reviewed by Sean Zalmanoff, Founder & Chief Loan Officer, Better Rate Mortgage (NMLS #239823). Last updated July 2026.
