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Quick answer

At current rates, renting wins over the full 30-year horizon in Dallas. Monthly ownership cost $3,217 (vs $$1,850/mo rent) plus TX's 1.90% property tax make the math tough.

Rent vs Buy · TX

Rent vs Buy in Dallas (2026)

Real math using TX's 1.90% property tax rate, $3,800/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 Dallas at TX'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

$3,217/mo

Mortgage P&I

$304,000 loan, 30yr @ 6.8%

$1,982

Property tax

1.90% of assessed (TX avg)

$602

Homeowners insurance

$3,800/yr TX avg

$317

Maintenance

1%/yr of home value

$317

Cash at close: ~$85,500 ($20% down + fees)

Renting

$1,850/mo

2BR rent (median)

Dallas market rate

$1,850

Renters insurance

~$15/mo typical

$15

Down payment invested

$76,000 growing at 7%/yr

(opportunity cost)

Monthly gap: $1,367 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.

YearHome valueBuyer equity (net)Renter portfolio (net)Buy wins by
Year 5$440,524$-145,580+$80,612$-226,191
Year 10$510,688$-237,929+$108,604$-346,533
Year 15$592,028$-313,386+$172,818$-486,204
Year 30$922,360$-342,516+$812,214$-1,154,731

Assumptions

Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.

Home price$380K (Dallas median)
2BR rent$1,850/mo (Dallas median)
Down payment20%
Mortgage rate6.8% 30-yr fixed (current market)
Property tax1.90% (TX effective avg)
Insurance$3,800/yr (TX avg)
Maintenance1%/yr of home value
Home appreciation3%/yr
Rent growth3%/yr
Investment return7%/yr (S&P real, long-term avg)
Buy closing costs2.5% of home value
Sell closing costs6.0% (realtor + transfer)

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 Dallas?

In Dallas at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,217) well exceed median 2BR rent ($1,850), and TX's 1.90% property tax makes the math especially tough.

What's the monthly cost of owning a home in Dallas?

On a median $380K home with 20% down at 6.8% fixed rate: mortgage P&I $1,982, property tax $602 (1.90% of assessed value), homeowners insurance $317 (TX average $3,800/year), and maintenance $317 (1% of home value/year). Total: $3,217/month.

How much down payment do I need to buy in Dallas?

20% down on a median Dallas home ($380K) is $76,000. Plus closing costs of roughly 2.5% ($9,500). Total cash-to-close: about $85,500. FHA loans allow 3.5% down ($13,300) but require mortgage insurance that adds ~$148/month.

What's the 10-year cost of renting vs buying in Dallas?

Over 10 years in Dallas: renters pay $254,498 in cumulative rent but have $363,103 invested (assuming 7% return on the $76,000 down payment + monthly savings). Buyers have paid $458,346 in total ownership costs and hold $251,059 in home equity. Net: renting is ahead by $346,533 at year 10.