Quick answer
In Washington, DC, buying breaks even around year 22. Monthly ownership cost $4,380 vs 2BR rent $3,200/mo. If you plan to stay 22+ years, buy. Less, rent.
Rent vs Buy · DC
Rent vs Buy in Washington, DC (2026)
Real math using DC's 0.62% property tax rate, $1,350/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 22
If you stay 22+ years in Washington, DC, buying pulls ahead of renting + investing the down payment. Less than 22 years, rent and invest the difference.
Monthly Cost Breakdown
Buying
$4,380/mo
Mortgage P&I
$520,000 loan, 30yr @ 6.8%
$3,390
Property tax
0.62% of assessed (DC avg)
$336
Homeowners insurance
$1,350/yr DC avg
$113
Maintenance
1%/yr of home value
$542
Cash at close: ~$146,250 ($20% down + fees)
Renting
$3,200/mo
2BR rent (median)
Washington, DC market rate
$3,200
Renters insurance
~$15/mo typical
$15
Down payment invested
$130,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,180 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 | $753,528 | $-177,504 | +$51,109 | $-228,612 |
| Year 10 | $873,546 | $-252,565 | $-35,633 | $-216,931 |
| Year 15 | $1,012,679 | $-285,527 | $-129,578 | $-155,949 |
| Year 30 | $1,577,721 | +$54,957 | $-213,910 | +$268,867 |
Break-even: year 22.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 Washington, DC?
In Washington, DC with a 20% down payment on a median $650K home at 6.8% mortgage rate, buying breaks even around year 22. If you plan to stay less than 22 years, renting wins financially. If you'll stay 22+ years, buying pulls ahead.
What's the monthly cost of owning a home in Washington, DC?
On a median $650K home with 20% down at 6.8% fixed rate: mortgage P&I $3,390, property tax $336 (0.62% of assessed value), homeowners insurance $113 (DC average $1,350/year), and maintenance $542 (1% of home value/year). Total: $4,380/month.
How much down payment do I need to buy in Washington, DC?
20% down on a median Washington, DC home ($650K) is $130,000. Plus closing costs of roughly 2.5% ($16,250). Total cash-to-close: about $146,250. FHA loans allow 3.5% down ($22,750) but require mortgage insurance that adds ~$253/month.
What's the 10-year cost of renting vs buying in Washington, DC?
Over 10 years in Washington, DC: renters pay $440,213 in cumulative rent but have $404,580 invested (assuming 7% return on the $130,000 down payment + monthly savings). Buyers have paid $629,595 in total ownership costs and hold $429,443 in home equity. Net: renting is ahead by $216,931 at year 10.