Quick answer
At current rates, renting wins over the full 30-year horizon in Sacramento. Monthly ownership cost $3,149 (vs $$1,980/mo rent) plus CA's 0.74% property tax make the math tough.
Rent vs Buy · CA
Rent vs Buy in Sacramento (2026)
Real math using CA's 0.74% property tax rate, $1,800/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 Sacramento at CA'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
$3,149/mo
Mortgage P&I
$360,000 loan, 30yr @ 6.8%
$2,347
Property tax
0.74% of assessed (CA avg)
$278
Homeowners insurance
$1,800/yr CA avg
$150
Maintenance
1%/yr of home value
$375
Cash at close: ~$101,250 ($20% down + fees)
Renting
$1,980/mo
2BR rent (median)
Sacramento market rate
$1,980
Renters insurance
~$15/mo typical
$15
Down payment invested
$90,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,169 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 | $521,673 | $-130,349 | +$76,106 | $-206,454 |
| Year 10 | $604,762 | $-190,964 | +$73,619 | $-264,583 |
| Year 15 | $701,085 | $-223,811 | +$89,840 | $-313,651 |
| Year 30 | $1,092,268 | $-28,814 | +$402,189 | $-431,003 |
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 Sacramento?
In Sacramento at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,149) well exceed median 2BR rent ($1,980), and CA's 0.74% property tax makes the math especially tough.
What's the monthly cost of owning a home in Sacramento?
On a median $450K home with 20% down at 6.8% fixed rate: mortgage P&I $2,347, property tax $278 (0.74% of assessed value), homeowners insurance $150 (CA average $1,800/year), and maintenance $375 (1% of home value/year). Total: $3,149/month.
How much down payment do I need to buy in Sacramento?
20% down on a median Sacramento home ($450K) is $90,000. Plus closing costs of roughly 2.5% ($11,250). Total cash-to-close: about $101,250. FHA loans allow 3.5% down ($15,750) but require mortgage insurance that adds ~$175/month.
What's the 10-year cost of renting vs buying in Sacramento?
Over 10 years in Sacramento: renters pay $272,382 in cumulative rent but have $346,001 invested (assuming 7% return on the $90,000 down payment + monthly savings). Buyers have paid $451,985 in total ownership costs and hold $297,307 in home equity. Net: renting is ahead by $264,583 at year 10.