Quick answer
At current rates, renting wins over the full 30-year horizon in Dallas. Monthly ownership cost $3,217 (vs $$1,850/mo rent) plus TX's 1.90% property tax make the math tough.
Rent vs Buy · TX
Rent vs Buy in Dallas (2026)
Real math using TX's 1.90% property tax rate, $3,800/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
Renting wins (30-year horizon)
In Dallas at TX's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$3,217/mo
Mortgage P&I
$304,000 loan, 30yr @ 6.8%
$1,982
Property tax
1.90% of assessed (TX avg)
$602
Homeowners insurance
$3,800/yr TX avg
$317
Maintenance
1%/yr of home value
$317
Cash at close: ~$85,500 ($20% down + fees)
Renting
$1,850/mo
2BR rent (median)
Dallas market rate
$1,850
Renters insurance
~$15/mo typical
$15
Down payment invested
$76,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,367 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 | $440,524 | $-145,580 | +$80,612 | $-226,191 |
| Year 10 | $510,688 | $-237,929 | +$108,604 | $-346,533 |
| Year 15 | $592,028 | $-313,386 | +$172,818 | $-486,204 |
| Year 30 | $922,360 | $-342,516 | +$812,214 | $-1,154,731 |
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 Dallas?
In Dallas at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,217) well exceed median 2BR rent ($1,850), and TX's 1.90% property tax makes the math especially tough.
What's the monthly cost of owning a home in Dallas?
On a median $380K home with 20% down at 6.8% fixed rate: mortgage P&I $1,982, property tax $602 (1.90% of assessed value), homeowners insurance $317 (TX average $3,800/year), and maintenance $317 (1% of home value/year). Total: $3,217/month.
How much down payment do I need to buy in Dallas?
20% down on a median Dallas home ($380K) is $76,000. Plus closing costs of roughly 2.5% ($9,500). Total cash-to-close: about $85,500. FHA loans allow 3.5% down ($13,300) but require mortgage insurance that adds ~$148/month.
What's the 10-year cost of renting vs buying in Dallas?
Over 10 years in Dallas: renters pay $254,498 in cumulative rent but have $363,103 invested (assuming 7% return on the $76,000 down payment + monthly savings). Buyers have paid $458,346 in total ownership costs and hold $251,059 in home equity. Net: renting is ahead by $346,533 at year 10.