Quick answer
At current rates, renting wins over the full 30-year horizon in Miami. Monthly ownership cost $4,985 (vs $$3,100/mo rent) plus FL's 0.98% property tax make the math tough.
Rent vs Buy · FL
Rent vs Buy in Miami (2026)
Real math using FL's 0.98% property tax rate, $7,500/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
Renting wins (30-year horizon)
In Miami at FL'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
$4,985/mo
Mortgage P&I
$508,000 loan, 30yr @ 6.8%
$3,312
Property tax
0.98% of assessed (FL avg)
$519
Homeowners insurance
$7,500/yr FL avg
$625
Maintenance
1%/yr of home value
$529
Cash at close: ~$142,875 ($20% down + fees)
Renting
$3,100/mo
2BR rent (median)
Miami market rate
$3,100
Renters insurance
~$15/mo typical
$15
Down payment invested
$127,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,885 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 | $736,139 | $-218,361 | +$105,001 | $-323,362 |
| Year 10 | $853,387 | $-343,803 | +$105,603 | $-449,405 |
| Year 15 | $989,309 | $-436,418 | +$142,913 | $-579,331 |
| Year 30 | $1,541,312 | $-349,139 | +$731,486 | $-1,080,625 |
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 Miami?
In Miami at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($4,985) well exceed median 2BR rent ($3,100), and FL's 0.98% property tax makes the math especially tough.
What's the monthly cost of owning a home in Miami?
On a median $635K home with 20% down at 6.8% fixed rate: mortgage P&I $3,312, property tax $519 (0.98% of assessed value), homeowners insurance $625 (FL average $7,500/year), and maintenance $529 (1% of home value/year). Total: $4,985/month.
How much down payment do I need to buy in Miami?
20% down on a median Miami home ($635K) is $127,000. Plus closing costs of roughly 2.5% ($15,875). Total cash-to-close: about $142,875. FHA loans allow 3.5% down ($22,225) but require mortgage insurance that adds ~$247/month.
What's the 10-year cost of renting vs buying in Miami?
Over 10 years in Miami: renters pay $426,456 in cumulative rent but have $532,059 invested (assuming 7% return on the $127,000 down payment + monthly savings). Buyers have paid $712,132 in total ownership costs and hold $419,533 in home equity. Net: renting is ahead by $449,405 at year 10.