Rent vs buy in Amarillo, TX
A typical rent in Amarillo, Texas is $1,305 /mo, while a typical home costs $209,627.
It's a toss-up: after 7 years, the difference is $1,613
The figures rely on 20% down and today's mortgage rate, using Amarillo's typical rent and home value. The break-even point arrives in year 7.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. Change any number and the stamp will change.
- Gap
- $2k after 7 years
- Cost break-even point
- Year 7 when owning catches up
- Full ownership cost
- $2,041 each month year 1, against $1,305 rent
Change my numbers
The stamp takes Amarillo's typical rent and home value as its basis. Your rent, price and time period can change the stamp's result.
Your numbers differ from the city's?
Enter the rent, price and down payment you want. It changes when those figures change.
Is it cheaper to rent or buy in Amarillo?
After 7 years, the two paths differ by no more than $1,613, so small changes decide the outcome. In year 7, owning's net cost falls below renting's and remains lower.
Rent option. Ownership option. Net cost up to now, shown by year.
Amarillo: comparing average rent with mortgage payments
Rent and mortgage payments don't cover everything. Here are all monthly costs for year 1 based on Amarillo's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,305 | All of it, every month |
| Mortgage payment | $1,143 | $1,007 of it is interest in year 1 |
| Property tax | $266 | 1.52% of the value a year |
| Insurance | $165 | Census median for the city |
| Upkeep | $175 | 1% of the value a year |
| Owning, cash out | $1,748 | $136 of it builds equity |
| Lost return on the down payment | $341 | What the cash would earn over a year at 8.3% |
| Buying costs, spread out | $87 | 3.5% of the price over 7 years |
| True cost of owning | $2,041 | Cash paid, minus the equity amount, plus both items above. |
Amarillo verdict, explained by the figures
- Typical home valueZillow ZHVI, September 2026
- $209,627
- Typical rentZillow ZORI, September 2026
- $1,305 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Texas, 1995 to 2025
- 4.7% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Amarillo
- 1.52% of value
- Home insuranceCensus ACS 2020-2024, Amarillo
- $165 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What could change the Amarillo result?
Each line marks the point where Amarillo's verdict for 7 years changes. All other figures stay fixed.
When renting comes out ahead
- Home prices grow at less than 4.6% a year (our calculation uses 4.7%, Texas's rate over the long run).
- The mortgage rate remains above 7.38%.
- For a home like this, rent runs under $1,290 each month (the local typical is $1,305).
- Before year 7, you move.
When buying comes out ahead
- Annual home price growth exceeds 4.6%.
- Your mortgage rate is below 7.38% once locked in (today's is 7.24%).
- For the same home, your monthly rent would exceed $1,290.
- You remain for 7 years or longer.
How Amarillo compares with 812 other cities
| Measure | Amarillo | Median city |
|---|---|---|
| Typical home value | $209,627 | $422,451 |
| Typical rent | $1,305 /mo | $1,837 /mo |
| Price-to-rent ratio | 13.4 (#708 of 813) | 18.5 |
| Home prices, last 10 years | 5.2% a year | 6.2% a year |
| Rents, last 5 years | 4.5% a year | 4% a year |
| Property tax | 1.52% | 0.87% |
| Households that rent | 40% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Texas
- It's a toss-up. Renting leads by $2k in Houston, TX.
- Renting wins. San Antonio, TX has a $10k lead for renting.
- Renting wins. Dallas, TX has a $20k lead for renting.
- Renting wins. Fort Worth, TX has a $17k lead for renting.
- Renting wins. Austin, TX has a $111k lead for renting.
- It's a toss-up. Buying leads by $2k in El Paso, TX.
- Renting wins. Arlington, TX has a $34k lead for renting.
- Buying wins. Corpus Christi, TX has a $4k lead for buying.
- Renting wins. Plano, TX has a $105k lead for renting.
- It's a toss-up. Buying leads by $2k in Lubbock, TX.
- Renting wins. Laredo, TX has a $20k lead for renting.
- Renting wins. Irving, TX has a $36k lead for renting.