Rent vs buy in Anderson, IN
In Anderson, Indiana, the typical rent is $1,088 /mo and the typical home $132,635.
Over 7 years, buying wins by $23k
Using Anderson's typical rent and home value, plus 20% down and today's mortgage rate. You break even in year 3.
Our take, labelled clearly, with the math shown. These are estimates, not quotes. Adjust any number and the stamp updates.
- Owning comes out ahead by
- $23k after 7 years
- Break-even point
- year 3 when owning catches up
- Real cost of owning
- $1,201 /mo year 1, against $1,088 rent
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In Anderson, is it cheaper to rent or to buy?
Count the money that comes back to you when you sell, and buying is cheaper by $23,494 over 7 years. In year 3, owning's net cost falls under renting's and stays lower.
Renting Owning Net cost to date, by year.
In Anderson, average rent set against the mortgage payment
Rent and mortgage alone don't tell the whole story. Here are all the monthly costs for year 1, based on Anderson's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,088 | All of it, every month |
| Mortgage payment | $723 | $637 of it is interest in year 1 |
| Property tax | $93 | 0.84% of the value a year |
| Insurance | $89 | Census median for the city |
| Upkeep | $111 | 1% of the value a year |
| Owning, cash out | $1,015 | $86 of it builds equity |
| Lost return on the down payment | $216 | What that cash would earn yearly at 8.3% |
| Buying costs, spread out | $55 | 3.5% of the price over 7 years |
| True cost of owning | $1,201 | Cash out, take out the equity part, then add the two lines above |
The Anderson verdict in numbers
- Typical value of a homeZillow ZHVI, September 2026
- $132,635
- Typical rentZillow data, ZORI, September 2026
- $1,088 a month
- Down paymentA 20% down payment avoids private mortgage insurance, which the engine leaves out of the model
- 20%
- Mortgage rate used hereFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA price index for homes, Indiana, 1995 to 2025
- 3.7% each year
- How rents grew, yearly 2006 to 2026: CPI rent of primary residence
- 3.5% each year
- Return on savings: 60% in S&P 500 with dividends plus 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% each year
- Property tax, from Census ACS 2020-2024, Anderson
- 0.84% of the value
- Home insurance, from Census ACS 2020-2024, Anderson
- $89 a month
- Maintenance, from Fannie Mae, the lower end of the 1% to 4% range
- 1% of the value each year
- Buying costs, from Freddie Mac, the middle of the 2% to 5% range
- 3.5% of the price
- Selling costsThe agent's commission and closing costs
- 6% of the price
What would change the verdict in Anderson?
Each line marks where the 7-year verdict for Anderson changes, while everything else stays as it is.
When renting comes out ahead
- Prices for homes grow slower than 1.2% a year; 3.7%, Indiana's long-run rate, is the figure we use.
- The mortgage rate holds above 10.35%.
- A comparable home here rents for under $840 monthly, while the typical figure is $1,088.
- You move before you reach year 3.
Buying comes out ahead when
- Home prices rise by more than 1.2% a year.
- You lock in a mortgage rate under 10.35% (right now it's 7.24%).
- You would pay more than $840 monthly to rent the same home.
- You stay 3 years or more.
Anderson compared with the other 812 cities
| Measure | Anderson | Median city |
|---|---|---|
| Typical home value | $132,635 | $422,451 |
| Typical rent | $1,088 /mo | $1,837 /mo |
| Price-to-rent ratio | 10.2 (#786 of 813) | 18.5 |
| Home prices, last 10 years | 10.3% a year | 6.2% a year |
| Rents, last 5 years | 5.6% a year | 4% a year |
| Property tax | 0.84% | 0.87% |
| Households that rent | 45% | 42% |
Figures come from Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Indiana cities
- Toss-up. Indianapolis, IN. Renting leads by $2k, though the verdict remains a toss-up.
- Rent. Fort Wayne, IN. Renting comes out ahead by $20k.
- Rent. Evansville, IN. Renting comes out ahead by $17k.
- Rent. Fishers, IN. Renting comes out ahead by $70k.
- Buy. South Bend, IN. Buying comes out ahead by $4k.
- Rent. Carmel, IN. Renting comes out ahead by $143k.
- Rent. Bloomington, IN. Renting comes out ahead by $9k.
- Buy. Hammond, IN. Buying comes out ahead by $37k.
- Rent. Noblesville, IN. Renting comes out ahead by $62k.
- Renting wins by $24k in Lafayette, IN.
- Renting wins by $33k in Greenwood, IN.
- Buying wins by $72k in Gary, IN.