Rent vs buy in Baton Rouge, LA
Typical rent in Baton Rouge, Louisiana is $1,301 /mo, while a typical home costs $228,438.
Renting comes out ahead by $10k over 7 years
At today's mortgage rate, with 20% down and Baton Rouge's typical home value and rent. The break-even point occurs in year 10.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. The stamp changes when you change a number.
- Rent advantage
- $10k after 7 years
- Break-even point
- Year 10 when owning catches up
- Full cost of owning
- $2,022 /mo year 1, against $1,301 rent
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Is it cheaper to rent or buy in Baton Rouge?
Over 7 years, renting costs $10,497 less when you include the money returned after you sell. For the first 9 years, renting costs less. By year 10, owning catches up.
Rent. Buy. Net cost to date, by year.
Average rent compared with mortgage payment in Baton Rouge
Rent and the mortgage don't tell the whole story. Here are all monthly costs for year 1 using Baton Rouge's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,301 | All of it, every month |
| Mortgage payment | $1,245 | $1,098 of it is interest in year 1 |
| Property tax | $118 | 0.62% of the value a year |
| Insurance | $149 | Census median for the city |
| Upkeep | $190 | 1% of the value a year |
| Owning, cash out | $1,703 | $148 of it builds equity |
| Lost return on the down payment | $371 | The yearly return on the cash at 8.3% |
| Buying costs, spread out | $95 | 3.5% of the price over 7 years |
| True cost of owning | $2,022 | Cash out, minus the equity part, plus the two items above |
The Baton Rouge figures behind the verdict
- Typical home valueZillow ZHVI, September 2026
- $228,438
- Typical rentZillow ZORI, September 2026
- $1,301 /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, Louisiana, 1995 to 2025
- 3.6% 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, Baton Rouge
- 0.62% of value
- Home insuranceCensus ACS 2020-2024, Baton Rouge
- $149 /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
In Baton Rouge, what would flip the result?
Each line marks the threshold where the 7-year result for Baton Rouge changes, while everything else remains unchanged.
Renting comes out ahead when
- Home prices grow by less than 4.2% a year. We use Louisiana's long-run rate of 3.6%.
- The mortgage rate remains above 6.43%.
- Monthly rent for a comparable property is under $1,410, compared with a typical $1,301 here.
- Your move occurs before year 10.
Buying takes the lead when
- Home prices grow by more than 4.2% a year.
- You secure a mortgage rate under 6.43%, compared with today's 7.24%.
- You'd pay over $1,410 a month to rent the same home.
- You stay for 10 years or longer.
How Baton Rouge compares with 812 other cities
| Measure | Baton Rouge | Median city |
|---|---|---|
| Typical home value | $228,438 | $422,451 |
| Typical rent | $1,301 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.6 (#645 of 813) | 18.5 |
| Home prices, last 10 years | 2.8% a year | 6.2% a year |
| Rents, last 5 years | 2.7% a year | 4% a year |
| Property tax | 0.62% | 0.87% |
| Households that rent | 52% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other cities across Louisiana
- Renting leads by $1k in New Orleans, LA. The result is a toss-up.
- Buying wins by $21k in Shreveport, LA. Buy.
- Renting wins by $8k in Lafayette, LA. Rent.
- Buying wins by $6k in Lake Charles, LA. Buy.
- Toss-up. Kenner, LA: toss-up, with renting ahead by $4k.
- Buying wins by $15k in Bossier City, LA. Buy.