Quick answer
In Chicago, buying breaks even around year 17. Monthly ownership cost $2,858 vs 2BR rent $2,350/mo. If you plan to stay 17+ years, buy. Less, rent.
Rent vs Buy · IL
Rent vs Buy in Chicago (2026)
Real math using IL's 2.27% property tax rate, $1,900/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 17
If you stay 17+ years in Chicago, buying pulls ahead of renting + investing the down payment. Less than 17 years, rent and invest the difference.
Monthly Cost Breakdown
Buying
$2,858/mo
Mortgage P&I
$272,000 loan, 30yr @ 6.8%
$1,773
Property tax
2.27% of assessed (IL avg)
$643
Homeowners insurance
$1,900/yr IL avg
$158
Maintenance
1%/yr of home value
$283
Cash at close: ~$76,500 ($20% down + fees)
Renting
$2,350/mo
2BR rent (median)
Chicago market rate
$2,350
Renters insurance
~$15/mo typical
$15
Down payment invested
$68,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $508 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 | $394,153 | $-128,971 | $-24,311 | $-104,660 |
| Year 10 | $456,932 | $-210,109 | $-132,066 | $-78,043 |
| Year 15 | $529,709 | $-275,897 | $-254,830 | $-21,067 |
| Year 30 | $825,269 | $-294,949 | $-597,627 | +$302,678 |
Break-even: year 17.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 Chicago?
In Chicago with a 20% down payment on a median $340K home at 6.8% mortgage rate, buying breaks even around year 17. If you plan to stay less than 17 years, renting wins financially. If you'll stay 17+ years, buying pulls ahead.
What's the monthly cost of owning a home in Chicago?
On a median $340K home with 20% down at 6.8% fixed rate: mortgage P&I $1,773, property tax $643 (2.27% of assessed value), homeowners insurance $158 (IL average $1,900/year), and maintenance $283 (1% of home value/year). Total: $2,858/month.
How much down payment do I need to buy in Chicago?
20% down on a median Chicago home ($340K) is $68,000. Plus closing costs of roughly 2.5% ($8,500). Total cash-to-close: about $76,500. FHA loans allow 3.5% down ($11,900) but require mortgage insurance that adds ~$132/month.
What's the 10-year cost of renting vs buying in Chicago?
Over 10 years in Chicago: renters pay $323,281 in cumulative rent but have $191,215 invested (assuming 7% return on the $68,000 down payment + monthly savings). Buyers have paid $407,325 in total ownership costs and hold $224,632 in home equity. Net: renting is ahead by $78,043 at year 10.