Quick answer
At current rates, renting wins over the full 30-year horizon in Phoenix. Monthly ownership cost $2,895 (vs $$1,720/mo rent) plus AZ's 0.63% property tax make the math tough.
Rent vs Buy · AZ
Rent vs Buy in Phoenix (2026)
Real math using AZ's 0.63% property tax rate, $2,000/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 Phoenix at AZ'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
$2,895/mo
Mortgage P&I
$332,000 loan, 30yr @ 6.8%
$2,164
Property tax
0.63% of assessed (AZ avg)
$218
Homeowners insurance
$2,000/yr AZ avg
$167
Maintenance
1%/yr of home value
$346
Cash at close: ~$93,375 ($20% down + fees)
Renting
$1,720/mo
2BR rent (median)
Phoenix market rate
$1,720
Renters insurance
~$15/mo typical
$15
Down payment invested
$83,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,175 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 | $481,099 | $-119,592 | +$83,967 | $-203,559 |
| Year 10 | $557,725 | $-174,775 | +$100,479 | $-275,254 |
| Year 15 | $646,556 | $-204,237 | +$141,206 | $-345,442 |
| Year 30 | $1,007,314 | $-21,031 | +$567,662 | $-588,693 |
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 Phoenix?
In Phoenix at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($2,895) well exceed median 2BR rent ($1,720), and AZ's 0.63% property tax makes the math especially tough.
What's the monthly cost of owning a home in Phoenix?
On a median $415K home with 20% down at 6.8% fixed rate: mortgage P&I $2,164, property tax $218 (0.63% of assessed value), homeowners insurance $167 (AZ average $2,000/year), and maintenance $346 (1% of home value/year). Total: $2,895/month.
How much down payment do I need to buy in Phoenix?
20% down on a median Phoenix home ($415K) is $83,000. Plus closing costs of roughly 2.5% ($10,375). Total cash-to-close: about $93,375. FHA loans allow 3.5% down ($14,525) but require mortgage insurance that adds ~$162/month.
What's the 10-year cost of renting vs buying in Phoenix?
Over 10 years in Phoenix: renters pay $236,614 in cumulative rent but have $337,093 invested (assuming 7% return on the $83,000 down payment + monthly savings). Buyers have paid $415,495 in total ownership costs and hold $274,183 in home equity. Net: renting is ahead by $275,254 at year 10.