Rent or Buy in 2026? Where a Mortgage Now Costs Double the Rent

"Renting is throwing money away" is one of the stickiest ideas in personal finance. It was decent advice when mortgages were cheap. In 2026, with the 30-year rate around 6.66%, the math has moved — and in some states it has moved a lot. We compared the monthly cost of buying the median home (principal and interest, 20% down) with the monthly cost of renting a comparable place, state by state, using the same figures behind our comparison tool.

The gap is enormous in expensive states and nearly nothing in affordable ones. Where a mortgage costs far more than rent, buying is really a bet that price appreciation and tax benefits will make up the difference. Where they're close, buying locks in your housing cost and builds equity.

In Hawaii, buying the median home runs about $4,302 a month in principal and interest — roughly 2.3× the local rent level of $1,880. That's the widest rent-versus-buy gap in the country, and it's why so many high earners in coastal states keep renting even on six-figure salaries. At the other end, in Florida, a mortgage ($1,944) is only about 1.1× the rent level — buying barely costs more than renting, so ownership pencils out much faster.

Where buying is closest to renting

How to read this for your own decision

A high mortgage-to-rent ratio doesn't automatically mean "don't buy" — it means the breakeven is further out, so how long you'll stay matters more. A low ratio means buying is close to a no-brainer if you're stable. Two things this comparison leaves out on purpose, because they vary by person and property: property taxes and insurance (which can add hundreds a month, especially in Texas and Florida) and the equity you build as you pay down the loan.

Run your own numbers with the rent-vs-buy toggle in our compare tool, or see the largest loan you'd qualify for in any state's home affordability calculator.

Methodology

Mortgage is monthly principal and interest on 80% of the state's median home price (Zillow ZHVI) at the current Freddie Mac 30-year rate, 30-year term. Rent is the region's monthly housing cost from BEA Regional Price Parities. Property tax, insurance, HOA, and maintenance are excluded. See our methodology.