The rent vs. buy debate is one of the most consequential financial decisions most people make. But the answer is not universal — it depends entirely on where you live. In some states, owning a home is hundreds of dollars cheaper per month than renting. In others, renting is the only financially rational choice.
We compared average monthly rent to average monthly owner cost (mortgage, insurance, taxes) in every state. Here is what the data reveals.
Rent vs. Own: State-by-State Comparison
All states ranked by the rent-vs-own gap (negative = owning is cheaper).
| Rank | State | Avg Rent | Avg Owner Cost | Difference | Cheaper Option |
|---|---|---|---|---|---|
| 1 | Florida | $1,233/mo | $981/mo | $252/mo | Own |
| 2 | Alaska | $1,221/mo | $980/mo | $241/mo | Own |
| 3 | New Mexico | $876/mo | $687/mo | $189/mo | Own |
| 4 | Arizona | $1,016/mo | $829/mo | $187/mo | Own |
| 5 | West Virginia | $760/mo | $580/mo | $180/mo | Own |
| 6 | South Carolina | $945/mo | $771/mo | $174/mo | Own |
| 7 | Louisiana | $873/mo | $703/mo | $170/mo | Own |
| 8 | Mississippi | $782/mo | $660/mo | $122/mo | Own |
| 9 | Texas | $963/mo | $846/mo | $117/mo | Own |
| 10 | Arkansas | $760/mo | $646/mo | $114/mo | Own |
| 11 | Alabama | $799/mo | $691/mo | $108/mo | Own |
| 12 | Nevada | $1,127/mo | $1,021/mo | $106/mo | Own |
| 13 | Tennessee | $860/mo | $770/mo | $90/mo | Own |
| 14 | Oklahoma | $814/mo | $728/mo | $86/mo | Own |
| 15 | Georgia | $927/mo | $877/mo | $50/mo | Own |
| 16 | Colorado | $1,253/mo | $1,207/mo | $46/mo | Own |
| 17 | Kentucky | $771/mo | $734/mo | $37/mo | Own |
| 18 | North Carolina | $938/mo | $905/mo | $33/mo | Own |
| 19 | North Dakota | $770/mo | $766/mo | $4/mo | Own |
| 20 | Montana | $825/mo | $823/mo | $2/mo | Own |
| 21 | Delaware | $1,295/mo | $1,308/mo | $13/mo | Rent |
| 22 | Missouri | $768/mo | $783/mo | $15/mo | Rent |
| 23 | Virginia | $1,140/mo | $1,162/mo | $22/mo | Rent |
| 24 | Idaho | $919/mo | $943/mo | $24/mo | Rent |
| 25 | Michigan | $873/mo | $902/mo | $29/mo | Rent |
| 26 | Pennsylvania | $960/mo | $995/mo | $35/mo | Rent |
| 27 | Indiana | $883/mo | $928/mo | $45/mo | Rent |
| 28 | Kansas | $787/mo | $836/mo | $49/mo | Rent |
| 29 | Utah | $1,101/mo | $1,150/mo | $49/mo | Rent |
| 30 | Nebraska | $783/mo | $834/mo | $51/mo | Rent |
| 31 | Oregon | $1,137/mo | $1,198/mo | $61/mo | Rent |
| 32 | Washington | $1,202/mo | $1,269/mo | $67/mo | Rent |
| 33 | South Dakota | $756/mo | $824/mo | $68/mo | Rent |
| 34 | Wyoming | $937/mo | $1,008/mo | $71/mo | Rent |
| 35 | Ohio | $873/mo | $952/mo | $79/mo | Rent |
| 36 | Maine | $969/mo | $1,061/mo | $92/mo | Rent |
| 37 | Illinois | $837/mo | $939/mo | $102/mo | Rent |
| 38 | Iowa | $812/mo | $929/mo | $117/mo | Rent |
| 39 | Hawaii | $1,688/mo | $1,823/mo | $135/mo | Rent |
| 40 | Wisconsin | $891/mo | $1,057/mo | $166/mo | Rent |
| 41 | Minnesota | $915/mo | $1,092/mo | $177/mo | Rent |
| 42 | New York | $1,133/mo | $1,327/mo | $194/mo | Rent |
| 43 | California | $1,618/mo | $1,822/mo | $204/mo | Rent |
| 44 | Maryland | $1,415/mo | $1,635/mo | $220/mo | Rent |
| 45 | Vermont | $1,117/mo | $1,353/mo | $236/mo | Rent |
| 46 | New Hampshire | $1,273/mo | $1,559/mo | $286/mo | Rent |
| 47 | Connecticut | $1,409/mo | $1,894/mo | $485/mo | Rent |
| 48 | Rhode Island | $1,362/mo | $1,861/mo | $499/mo | Rent |
| 49 | Massachusetts | $1,558/mo | $2,058/mo | $500/mo | Rent |
| 50 | New Jersey | $1,577/mo | $2,096/mo | $519/mo | Rent |
| 51 | District of Columbia | $1,900/mo | $2,563/mo | $663/mo | Rent |
Where Owning Is Cheaper (20 States)
In 20 states, the average monthly cost of owning a home is lower than the average rent. These are predominantly in the Midwest and South, where home values are low enough that mortgage payments undercut rental prices.
The biggest advantage to owning is in states where owner costs are $252/mo lower than rent. In these markets, buying is not just a long-term wealth strategy — it is a monthly cash-flow win.
Where Renting Is Cheaper (31 States)
In 31 states, renting remains cheaper on a monthly basis. These are mostly coastal and mountain states where home values have outpaced rents, making the barrier to homeownership high and the monthly savings from owning minimal or nonexistent.
In the most expensive states to own, the monthly owner cost exceeds rent by $663/mo. In these markets, renting frees up cash for other investments while you wait for a better buying opportunity.
The Hidden Costs of Ownership
Monthly owner cost is just one piece of the puzzle. Homeowners also face:
- Down payment: Typically 3-20% of home value — a significant upfront cost.
- Maintenance and repairs: Budget 1-3% of home value annually.
- Property taxes: Vary widely by county and can increase over time.
- Closing costs: 2-5% of purchase price when buying, plus realtor fees when selling.
- Less flexibility: Selling a home takes months; ending a lease takes 30 days.
When Renting Makes Sense
- Short-term stay: If you will be in an area less than 3-5 years, transaction costs usually outweigh ownership benefits.
- High-cost markets: In states where owning costs significantly more, investing the difference can outperform home equity growth.
- Career uncertainty: Renting provides flexibility to relocate for better opportunities.
- Low savings: If you cannot afford a 3-6 month emergency fund plus a down payment, renting is the safer choice.
Methodology
State averages calculated from county-level data from the U.S. Census Bureau ACS 5-Year Estimates (2019-2023). Average rent is the mean of county median gross rents. Average owner cost is the mean of county median monthly owner costs (including mortgage, insurance, and taxes). The "cheaper" option is determined by which monthly cost is lower.
Data source: U.S. Census Bureau, American Community Survey (ACS) 5-Year Estimates (2019-2023). All figures are estimates based on survey data and may not reflect current market conditions.