Quick answer
At current rates, renting wins over the full 30-year horizon in San Francisco. Monthly ownership cost $7,482 (vs $$3,800/mo rent) plus CA's 0.74% property tax make the math tough.
Rent vs Buy · CA
Rent vs Buy in San Francisco (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 San Francisco 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
$7,482/mo
Mortgage P&I
$880,000 loan, 30yr @ 6.8%
$5,737
Property tax
0.74% of assessed (CA avg)
$678
Homeowners insurance
$1,800/yr CA avg
$150
Maintenance
1%/yr of home value
$917
Cash at close: ~$247,500 ($20% down + fees)
Renting
$3,800/mo
2BR rent (median)
San Francisco market rate
$3,800
Renters insurance
~$15/mo typical
$15
Down payment invested
$220,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $3,682 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 | $1,275,201 | $-304,826 | +$312,384 | $-617,210 |
| Year 10 | $1,478,308 | $-436,994 | +$476,966 | $-913,960 |
| Year 15 | $1,713,764 | $-498,737 | +$748,385 | $-1,247,122 |
| Year 30 | $2,669,989 | +$53,261 | +$2,811,701 | $-2,758,440 |
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 San Francisco?
In San Francisco at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($7,482) well exceed median 2BR rent ($3,800), and CA's 0.74% property tax makes the math especially tough.
What's the monthly cost of owning a home in San Francisco?
On a median $1100K home with 20% down at 6.8% fixed rate: mortgage P&I $5,737, property tax $678 (0.74% of assessed value), homeowners insurance $150 (CA average $1,800/year), and maintenance $917 (1% of home value/year). Total: $7,482/month.
How much down payment do I need to buy in San Francisco?
20% down on a median San Francisco home ($1100K) is $220,000. Plus closing costs of roughly 2.5% ($27,500). Total cash-to-close: about $247,500. FHA loans allow 3.5% down ($38,500) but require mortgage insurance that adds ~$429/month.
What's the 10-year cost of renting vs buying in San Francisco?
Over 10 years in San Francisco: renters pay $522,753 in cumulative rent but have $999,719 invested (assuming 7% return on the $220,000 down payment + monthly savings). Buyers have paid $1,075,045 in total ownership costs and hold $726,750 in home equity. Net: renting is ahead by $913,960 at year 10.