Quick answer
At current rates, renting wins over the full 30-year horizon in Boston. Monthly ownership cost $5,247 (vs $$3,400/mo rent) plus MA's 1.23% property tax make the math tough.
Rent vs Buy · MA
Rent vs Buy in Boston (2026)
Real math using MA's 1.23% property tax rate, $1,850/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 Boston at MA'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
$5,247/mo
Mortgage P&I
$576,000 loan, 30yr @ 6.8%
$3,755
Property tax
1.23% of assessed (MA avg)
$738
Homeowners insurance
$1,850/yr MA avg
$154
Maintenance
1%/yr of home value
$600
Cash at close: ~$162,000 ($20% down + fees)
Renting
$3,400/mo
2BR rent (median)
Boston market rate
$3,400
Renters insurance
~$15/mo typical
$15
Down payment invested
$144,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,847 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 | $834,677 | $-221,820 | +$105,249 | $-327,069 |
| Year 10 | $967,620 | $-334,178 | +$81,419 | $-415,597 |
| Year 15 | $1,121,737 | $-404,558 | +$83,376 | $-487,934 |
| Year 30 | $1,747,629 | $-164,946 | +$478,620 | $-643,567 |
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 Boston?
In Boston at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($5,247) well exceed median 2BR rent ($3,400), and MA's 1.23% property tax makes the math especially tough.
What's the monthly cost of owning a home in Boston?
On a median $720K home with 20% down at 6.8% fixed rate: mortgage P&I $3,755, property tax $738 (1.23% of assessed value), homeowners insurance $154 (MA average $1,850/year), and maintenance $600 (1% of home value/year). Total: $5,247/month.
How much down payment do I need to buy in Boston?
20% down on a median Boston home ($720K) is $144,000. Plus closing costs of roughly 2.5% ($18,000). Total cash-to-close: about $162,000. FHA loans allow 3.5% down ($25,200) but require mortgage insurance that adds ~$281/month.
What's the 10-year cost of renting vs buying in Boston?
Over 10 years in Boston: renters pay $467,726 in cumulative rent but have $549,145 invested (assuming 7% return on the $144,000 down payment + monthly savings). Buyers have paid $751,812 in total ownership costs and hold $475,691 in home equity. Net: renting is ahead by $415,597 at year 10.