Quick answer
In St. Louis, buying breaks even around year 15. Monthly ownership cost $1,674 vs 2BR rent $1,380/mo. If you plan to stay 15+ years, buy. Less, rent.
Rent vs Buy · MO
Rent vs Buy in St. Louis (2026)
Real math using MO's 0.97% property tax rate, $2,400/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
Buy after year 15
If you stay 15+ years in St. Louis, buying pulls ahead of renting + investing the down payment. Less than 15 years, rent and invest the difference.
Monthly Cost Breakdown
Buying
$1,674/mo
Mortgage P&I
$172,000 loan, 30yr @ 6.8%
$1,121
Property tax
0.97% of assessed (MO avg)
$174
Homeowners insurance
$2,400/yr MO avg
$200
Maintenance
1%/yr of home value
$179
Cash at close: ~$48,375 ($20% down + fees)
Renting
$1,380/mo
2BR rent (median)
St. Louis market rate
$1,380
Renters insurance
~$15/mo typical
$15
Down payment invested
$43,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $294 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 | $249,244 | $-73,079 | $-10,589 | $-62,490 |
| Year 10 | $288,942 | $-114,561 | $-73,976 | $-40,585 |
| Year 15 | $334,963 | $-144,771 | $-145,336 | +$564 |
| Year 30 | $521,861 | $-110,559 | $-339,059 | +$228,500 |
Break-even: year 15.That's when accumulated home equity minus ownership costs finally exceeds the renter's invested portfolio.
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 St. Louis?
In St. Louis with a 20% down payment on a median $215K home at 6.8% mortgage rate, buying breaks even around year 15. If you plan to stay less than 15 years, renting wins financially. If you'll stay 15+ years, buying pulls ahead.
What's the monthly cost of owning a home in St. Louis?
On a median $215K home with 20% down at 6.8% fixed rate: mortgage P&I $1,121, property tax $174 (0.97% of assessed value), homeowners insurance $200 (MO average $2,400/year), and maintenance $179 (1% of home value/year). Total: $1,674/month.
How much down payment do I need to buy in St. Louis?
20% down on a median St. Louis home ($215K) is $43,000. Plus closing costs of roughly 2.5% ($5,375). Total cash-to-close: about $48,375. FHA loans allow 3.5% down ($7,525) but require mortgage insurance that adds ~$84/month.
What's the 10-year cost of renting vs buying in St. Louis?
Over 10 years in St. Louis: renters pay $189,842 in cumulative rent but have $115,866 invested (assuming 7% return on the $43,000 down payment + monthly savings). Buyers have paid $239,271 in total ownership costs and hold $142,047 in home equity. Net: renting is ahead by $40,585 at year 10.