Allen Markel, REALTOR® · Texas Premier Realty

Buying

Rent vs. own

What your current rent could be buying you, and the equity difference over 5 years.

Many buyers start with 3% down — it's less than most people think.

Today's 30-year average: 7.40% (Freddie Mac survey via FRED, week of Oct 8, 2026). Edit to your lender's quote.

Property tax: 2.25% typical in Harris County. Typical total rate for the 17,580 homes for sale in Harris County (median of their certified 2025 tax bills; most are between 2.13% and 2.51%). Add your ZIP for a closer figure.

Typical in Harris County: $81/mo (74% of homes for sale there list an HOA). Set 0 if yours has none.

Your rent could be buying

$252,125 of home

5 years of rent (gone)
$150,000
5 years of owning (est. equity built)
$25,152

Same monthly outlay, with the typical 2.25% property tax for Harris County, insurance, estimated PMI and your HOA included — before any home-value appreciation. Rent buys the landlord’s equity instead.

These homes cost about your rent each month.

Budgetary comparison, not financial advice. Owning has costs renting doesn’t (maintenance, repairs) and rewards renting can’t (equity, fixed principal & interest, appreciation). Talk it through with Allen and a lender.

Talk to a lender

These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Numbers raising questions? Walk through them with a person.

Schedule time with Allen

Questions about Rent Vs Own

What it does

  • What does the rent versus own calculator show?

    It shows what home price your current rent could carry as a monthly payment, and how the equity you would build compares with the rent you would pay over 5 years. It is a budgetary comparison, not financial advice.

  • Who is this calculator for?

    It fits a renter who is wondering whether their rent could instead go toward owning. It does not tell you whether you are ready to buy, since that depends on your credit, savings and plans. Talk to us if you want help working that out.

The inputs

  • What do I put in for the down payment you could bring?

    Enter the cash you could realistically bring to closing toward a down payment. The page notes that many buyers start with a small down payment, which is less than most people think. Do not count money you need to keep as a reserve.

  • Why does the tool ask which county I am shopping in?

    The county sets the typical property tax rate and HOA dues the tool uses in the payment. Picking the right county, and adding a ZIP code for a closer figure, makes the result more realistic. Taxes and HOA vary by neighborhood, so check the specific home.

  • What interest rate should I use?

    The page shows a current average for a 30-year loan from a published survey and tells you to edit it to your lender's quote. Your rate depends on your credit, down payment and loan type. A real quote makes the result much more accurate.

Reading the result

  • What does your rent could be buying mean?

    It is the home price you could afford if you paid the same monthly amount as your rent, with property tax, insurance, estimated mortgage insurance and HOA included. It is a way to see what your rent is buying you, not a loan offer or approval.

  • What are the two numbers for 5 years of rent and 5 years of owning?

    The rent figure is what you would pay in rent over 5 years, with nothing left at the end. The owning figure is the estimated equity you would have built by then. The page notes that rent buys the landlord's equity instead of yours.

  • Does the result include home value appreciation?

    No. The estimate is before any home-value appreciation. If the home rises in value, owning would look better, and if it falls, worse. Home values can move either way, so treat the equity number as a floor on principal paid, not a forecast.

Limits

  • What does the rent versus own comparison leave out?

    It does not count maintenance and repairs, which owning has and renting does not. It also leaves out the cost of buying and selling a home. The page names both the costs of owning and the rewards, such as equity, fixed principal and interest, and appreciation.

  • Does owning always beat renting?

    No. It depends on how long you stay, the price, the rate and your costs. The calculator is a comparison to start a conversation, not an answer. If you may move soon, renting can make sense. Talk to us about your circumstances and timeline.

  • Is the rent versus own result a pre-approval?

    No. It is a budgetary comparison, and we are not a lender. Only a lender can say what you qualify for. Talk to a lender and to us, and you will know what is really possible rather than guessing.

Next steps

  • What should I do after I see the result?

    Follow the link to homes for sale at about the price your rent could carry, and see what is available. Then talk to a lender about a real quote and what you would need to buy. Waiting costs you rent each month, so it is worth checking sooner.

  • What if I do not have much saved for a down payment?

    Try the calculator with a smaller amount and see how the result changes. Some buyers start with a small down payment, and there may be programs that help. Talk to us and a lender about your options before you assume you are not ready.

Using the tool

  • Does the rent vs. own tool say whether I am ready to buy?

    No. It shows what your rent could carry in a purchase and the equity difference over time, but readiness depends on your credit, savings, plans and a loan originator's review. Use it to start the conversation, then get pre-approved to see your real numbers.

  • What does owning cost that renting does not?

    Maintenance and repairs, property taxes, homeowner's insurance, and any HOA dues, plus the cost of tying up cash in the home. In return you build equity and have a fixed principal and interest payment. The calculator includes taxes, insurance, estimated mortgage insurance and HOA, but not repairs, so keep a repair budget.

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