Quick answer
In Baltimore, buying breaks even around year 13. Monthly ownership cost $2,316 vs 2BR rent $1,980/mo. If you plan to stay 13+ years, buy. Less, rent.
Rent vs Buy · MD
Rent vs Buy in Baltimore (2026)
Real math using MD's 1.09% property tax rate, $1,500/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Buy after year 13
If you stay 13+ years in Baltimore, buying pulls ahead of renting + investing the down payment. Less than 13 years, rent and invest the difference.
Monthly Cost Breakdown
Buying
$2,316/mo
Mortgage P&I
$252,000 loan, 30yr @ 6.8%
$1,643
Property tax
1.09% of assessed (MD avg)
$286
Homeowners insurance
$1,500/yr MD avg
$125
Maintenance
1%/yr of home value
$263
Cash at close: ~$70,875 ($20% down + fees)
Renting
$1,980/mo
2BR rent (median)
Baltimore market rate
$1,980
Renters insurance
~$15/mo typical
$15
Down payment invested
$63,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $336 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $365,171 | $-98,371 | $-19,757 | $-78,615 |
| Year 10 | $423,334 | $-149,065 | $-119,430 | $-29,635 |
| Year 15 | $490,760 | $-181,637 | $-227,387 | +$45,750 |
| Year 30 | $764,588 | $-84,040 | $-538,516 | +$454,476 |
Break-even: year 13.That's when accumulated home equity minus ownership costs finally exceeds the renter's invested portfolio.
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Baltimore?
In Baltimore with a 20% down payment on a median $315K home at 6.8% mortgage rate, buying breaks even around year 13. If you plan to stay less than 13 years, renting wins financially. If you'll stay 13+ years, buying pulls ahead.
What's the monthly cost of owning a home in Baltimore?
On a median $315K home with 20% down at 6.8% fixed rate: mortgage P&I $1,643, property tax $286 (1.09% of assessed value), homeowners insurance $125 (MD average $1,500/year), and maintenance $263 (1% of home value/year). Total: $2,316/month.
How much down payment do I need to buy in Baltimore?
20% down on a median Baltimore home ($315K) is $63,000. Plus closing costs of roughly 2.5% ($7,875). Total cash-to-close: about $70,875. FHA loans allow 3.5% down ($11,025) but require mortgage insurance that adds ~$123/month.
What's the 10-year cost of renting vs buying in Baltimore?
Over 10 years in Baltimore: renters pay $272,382 in cumulative rent but have $152,952 invested (assuming 7% return on the $63,000 down payment + monthly savings). Buyers have paid $331,779 in total ownership costs and hold $208,115 in home equity. Net: renting is ahead by $29,635 at year 10.