Quick answer
At current rates, renting wins over the full 30-year horizon in Salt Lake City. Monthly ownership cost $3,493 (vs $$1,850/mo rent) plus UT's 0.63% property tax make the math tough.
Rent vs Buy · UT
Rent vs Buy in Salt Lake City (2026)
Real math using UT's 0.63% property tax rate, $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
Renting wins (30-year horizon)
In Salt Lake City at UT'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
$3,493/mo
Mortgage P&I
$416,000 loan, 30yr @ 6.8%
$2,712
Property tax
0.63% of assessed (UT avg)
$273
Homeowners insurance
$900/yr UT avg
$75
Maintenance
1%/yr of home value
$433
Cash at close: ~$117,000 ($20% down + fees)
Renting
$1,850/mo
2BR rent (median)
Salt Lake City market rate
$1,850
Renters insurance
~$15/mo typical
$15
Down payment invested
$104,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,643 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 | $602,823 | $-141,323 | +$137,160 | $-278,484 |
| Year 10 | $698,837 | $-200,584 | +$199,920 | $-400,505 |
| Year 15 | $810,143 | $-226,041 | +$306,784 | $-532,825 |
| Year 30 | $1,262,176 | +$50,056 | +$1,147,333 | $-1,097,278 |
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 Salt Lake City?
In Salt Lake City at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,493) well exceed median 2BR rent ($1,850), and UT's 0.63% property tax makes the math especially tough.
What's the monthly cost of owning a home in Salt Lake City?
On a median $520K home with 20% down at 6.8% fixed rate: mortgage P&I $2,712, property tax $273 (0.63% of assessed value), homeowners insurance $75 (UT average $900/year), and maintenance $433 (1% of home value/year). Total: $3,493/month.
How much down payment do I need to buy in Salt Lake City?
20% down on a median Salt Lake City home ($520K) is $104,000. Plus closing costs of roughly 2.5% ($13,000). Total cash-to-close: about $117,000. FHA loans allow 3.5% down ($18,200) but require mortgage insurance that adds ~$203/month.
What's the 10-year cost of renting vs buying in Salt Lake City?
Over 10 years in Salt Lake City: renters pay $254,498 in cumulative rent but have $454,419 invested (assuming 7% return on the $104,000 down payment + monthly savings). Buyers have paid $502,208 in total ownership costs and hold $343,554 in home equity. Net: renting is ahead by $400,505 at year 10.