Quick answer
At current rates, renting wins over the full 30-year horizon in Nashville. Monthly ownership cost $3,122 (vs $$1,950/mo rent) plus TN's 0.71% property tax make the math tough.
Rent vs Buy · TN
Rent vs Buy in Nashville (2026)
Real math using TN's 0.71% property tax rate, $2,000/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 Nashville at TN'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
$3,122/mo
Mortgage P&I
$356,000 loan, 30yr @ 6.8%
$2,321
Property tax
0.71% of assessed (TN avg)
$263
Homeowners insurance
$2,000/yr TN avg
$167
Maintenance
1%/yr of home value
$371
Cash at close: ~$100,125 ($20% down + fees)
Renting
$1,950/mo
2BR rent (median)
Nashville market rate
$1,950
Renters insurance
~$15/mo typical
$15
Down payment invested
$89,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,172 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 | $515,877 | $-129,359 | +$76,880 | $-206,239 |
| Year 10 | $598,043 | $-189,833 | +$76,745 | $-266,578 |
| Year 15 | $693,296 | $-222,933 | +$96,107 | $-319,040 |
| Year 30 | $1,080,132 | $-32,609 | +$423,100 | $-455,709 |
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 Nashville?
In Nashville at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,122) well exceed median 2BR rent ($1,950), and TN's 0.71% property tax makes the math especially tough.
What's the monthly cost of owning a home in Nashville?
On a median $445K home with 20% down at 6.8% fixed rate: mortgage P&I $2,321, property tax $263 (0.71% of assessed value), homeowners insurance $167 (TN average $2,000/year), and maintenance $371 (1% of home value/year). Total: $3,122/month.
How much down payment do I need to buy in Nashville?
20% down on a median Nashville home ($445K) is $89,000. Plus closing costs of roughly 2.5% ($11,125). Total cash-to-close: about $100,125. FHA loans allow 3.5% down ($15,575) but require mortgage insurance that adds ~$173/month.
What's the 10-year cost of renting vs buying in Nashville?
Over 10 years in Nashville: renters pay $268,255 in cumulative rent but have $345,000 invested (assuming 7% return on the $89,000 down payment + monthly savings). Buyers have paid $447,954 in total ownership costs and hold $294,003 in home equity. Net: renting is ahead by $266,578 at year 10.