Question 1

Is it better to rent or buy a home in the DMV?

Accepted Answer

It depends mostly on how long you'll stay. Buying comes with large upfront costs (down payment, closing costs) that take years to recover through equity and appreciation. As a rule of thumb, buying usually wins if you'll stay well past the breakeven point — often 7 or more years in the DMV. Use the calculator above with your own numbers for a precise answer.

Question 2

What costs does the rent vs. buy calculator include?

Accepted Answer

On the buying side: down payment, closing costs, principal and interest, property tax, insurance, PMI, HOA, and maintenance — minus the equity you build through principal payments and home appreciation. It also accounts for the investment returns you'd give up by tying up your down payment. On the renting side: monthly rent growing at your assumed annual increase.

Question 3

Does the calculator account for home price appreciation?

Accepted Answer

Yes. Home value growth (default 4% per year) builds your equity over time and is a major reason buying pulls ahead in later years. You can adjust it — along with rent growth, closing costs, maintenance, and investment returns — under Advanced assumptions.

Question 4

When does buying become cheaper than renting?

Accepted Answer

The breakeven point is the first year when your net cost of buying drops below your cumulative cost of renting. With typical DMV numbers it can land anywhere from year 4 to year 14 — lower rates, higher rents, and bigger down payments pull it closer, while high rates and high closing costs push it out.

Rent vs. buy calculator

Your numbers

The verdict

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