Quick answer
At current rates, renting wins over the full 30-year horizon in El Paso. Monthly ownership cost $2,759 (vs $$1,400/mo rent) plus TX's 1.90% property tax make the math tough.
Rent vs Buy · TX
Rent vs Buy in El Paso (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 El Paso 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
$2,759/mo
Mortgage P&I
$256,000 loan, 30yr @ 6.8%
$1,669
Property tax
1.90% of assessed (TX avg)
$507
Homeowners insurance
$3,800/yr TX avg
$317
Maintenance
1%/yr of home value
$267
Cash at close: ~$72,000 ($20% down + fees)
Renting
$1,400/mo
2BR rent (median)
El Paso market rate
$1,400
Renters insurance
~$15/mo typical
$15
Down payment invested
$64,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,359 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 | $370,968 | $-125,779 | +$93,116 | $-218,895 |
| Year 10 | $430,053 | $-207,239 | +$152,048 | $-359,287 |
| Year 15 | $498,550 | $-275,063 | +$255,680 | $-530,743 |
| Year 30 | $776,724 | $-316,980 | +$1,097,493 | $-1,414,473 |
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 El Paso?
In El Paso at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($2,759) well exceed median 2BR rent ($1,400), and TX's 1.90% property tax makes the math especially tough.
What's the monthly cost of owning a home in El Paso?
On a median $320K home with 20% down at 6.8% fixed rate: mortgage P&I $1,669, property tax $507 (1.90% of assessed value), homeowners insurance $317 (TX average $3,800/year), and maintenance $267 (1% of home value/year). Total: $2,759/month.
How much down payment do I need to buy in El Paso?
20% down on a median El Paso home ($320K) is $64,000. Plus closing costs of roughly 2.5% ($8,000). Total cash-to-close: about $72,000. FHA loans allow 3.5% down ($11,200) but require mortgage insurance that adds ~$125/month.
What's the 10-year cost of renting vs buying in El Paso?
Over 10 years in El Paso: renters pay $192,593 in cumulative rent but have $344,641 invested (assuming 7% return on the $64,000 down payment + monthly savings). Buyers have paid $392,854 in total ownership costs and hold $211,418 in home equity. Net: renting is ahead by $359,287 at year 10.