Quick answer
At current rates, renting wins over the full 30-year horizon in Durham. Monthly ownership cost $3,015 (vs $$1,650/mo rent) plus NC's 0.82% property tax make the math tough.
Rent vs Buy · NC
Rent vs Buy in Durham (2026)
Real math using NC's 0.82% 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 Durham at NC'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
$3,015/mo
Mortgage P&I
$340,000 loan, 30yr @ 6.8%
$2,217
Property tax
0.82% of assessed (NC avg)
$290
Homeowners insurance
$1,850/yr NC avg
$154
Maintenance
1%/yr of home value
$354
Cash at close: ~$95,625 ($20% down + fees)
Renting
$1,650/mo
2BR rent (median)
Durham market rate
$1,650
Renters insurance
~$15/mo typical
$15
Down payment invested
$85,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,365 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 | $492,691 | $-125,708 | +$104,930 | $-230,639 |
| Year 10 | $571,164 | $-185,972 | +$148,562 | $-334,534 |
| Year 15 | $662,136 | $-220,491 | +$227,933 | $-448,423 |
| Year 30 | $1,031,587 | $-50,525 | +$893,451 | $-943,976 |
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 Durham?
In Durham at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,015) well exceed median 2BR rent ($1,650), and NC's 0.82% property tax makes the math especially tough.
What's the monthly cost of owning a home in Durham?
On a median $425K home with 20% down at 6.8% fixed rate: mortgage P&I $2,217, property tax $290 (0.82% of assessed value), homeowners insurance $154 (NC average $1,850/year), and maintenance $354 (1% of home value/year). Total: $3,015/month.
How much down payment do I need to buy in Durham?
20% down on a median Durham home ($425K) is $85,000. Plus closing costs of roughly 2.5% ($10,625). Total cash-to-close: about $95,625. FHA loans allow 3.5% down ($14,875) but require mortgage insurance that adds ~$166/month.
What's the 10-year cost of renting vs buying in Durham?
Over 10 years in Durham: renters pay $226,985 in cumulative rent but have $375,547 invested (assuming 7% return on the $85,000 down payment + monthly savings). Buyers have paid $432,492 in total ownership costs and hold $280,790 in home equity. Net: renting is ahead by $334,534 at year 10.