Quick answer
At current rates, renting wins over the full 30-year horizon in Plano. Monthly ownership cost $3,942 (vs $$1,750/mo rent) plus TX's 1.90% property tax make the math tough.
Rent vs Buy · TX
Rent vs Buy in Plano (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 Plano 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
$3,942/mo
Mortgage P&I
$380,000 loan, 30yr @ 6.8%
$2,477
Property tax
1.90% of assessed (TX avg)
$752
Homeowners insurance
$3,800/yr TX avg
$317
Maintenance
1%/yr of home value
$396
Cash at close: ~$106,875 ($20% down + fees)
Renting
$1,750/mo
2BR rent (median)
Plano market rate
$1,750
Renters insurance
~$15/mo typical
$15
Down payment invested
$95,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $2,192 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 | $550,655 | $-176,931 | +$171,877 | $-348,807 |
| Year 10 | $638,360 | $-286,520 | +$303,506 | $-590,026 |
| Year 15 | $740,035 | $-374,063 | +$515,720 | $-889,783 |
| Year 30 | $1,152,950 | $-382,949 | +$2,088,226 | $-2,471,175 |
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 Plano?
In Plano at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,942) well exceed median 2BR rent ($1,750), and TX's 1.90% property tax makes the math especially tough.
What's the monthly cost of owning a home in Plano?
On a median $475K home with 20% down at 6.8% fixed rate: mortgage P&I $2,477, property tax $752 (1.90% of assessed value), homeowners insurance $317 (TX average $3,800/year), and maintenance $396 (1% of home value/year). Total: $3,942/month.
How much down payment do I need to buy in Plano?
20% down on a median Plano home ($475K) is $95,000. Plus closing costs of roughly 2.5% ($11,875). Total cash-to-close: about $106,875. FHA loans allow 3.5% down ($16,625) but require mortgage insurance that adds ~$185/month.
What's the 10-year cost of renting vs buying in Plano?
Over 10 years in Plano: renters pay $240,741 in cumulative rent but have $544,247 invested (assuming 7% return on the $95,000 down payment + monthly savings). Buyers have paid $562,042 in total ownership costs and hold $313,824 in home equity. Net: renting is ahead by $590,026 at year 10.