Rent $800/mo vs Buy a $350K Home
A side-by-side financial comparison of renting at $800/month vs buying a $350,000 home with 20% down over 5 to 30 years.
Monthly Rent
$800
+ 3%/yr increases
Monthly Ownership
$2,554
P&I + tax + ins + maint
Monthly Ownership Breakdown
Principal & Interest
$1,839
Property Tax (1.1%)
$321
Insurance
$102
Maintenance (1%)
$292
Down Payment Required (20%)
$70,000
Wealth Comparison Over Time
| Year | Renter Wealth* | Home Equity | Winner | Difference |
|---|---|---|---|---|
| Year 5 | $102,853 | $152,477 | Buy | $49,624 |
| Year 7 | $119,968 | $190,585 | Buy | $70,617 |
| Year 10 | $151,125 | $254,146 | Buy | $103,021 |
| Year 15 | $222,052 | $380,128 | Buy | $158,076 |
| Year 20 | $326,267 | $537,123 | Buy | $210,856 |
| Year 30 | $704,386 | $982,378 | Buy | $277,992 |
* Renter wealth = down payment invested at 8% return. Home equity = home value (3.5% appreciation) minus remaining mortgage.
Analysis: Renting at $800 vs Buying at $350K
At $2,554/month, owning this $350K home costs significantly more than your $800/month rent. However, a portion of each mortgage payment builds equity, and the home is expected to appreciate at 3.5%/year.
Based on these assumptions, buying becomes the better financial move after about 5 years. If you plan to stay shorter than that, renting is more cost-effective. For a personalized analysis, use our mortgage calculator or explore other price points below.