Rent vs buy in Bloomington, IN
In Bloomington, Indiana, the typical rent is $1,763 /mo and a typical home is $312,287.
Over 7 years, renting comes out $9k ahead
Using Bloomington's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point: year 9.
Opinion, clearly labelled, math shown. Estimates, not quotes. Change any number and the stamp shifts.
- Renting leads by
- $9k after 7 years
- Break-even point
- Year 9 when owning catches up
- What owning really costs
- $2,711 /mo year 1, against $1,763 rent
Change my numbers
Those numbers are the ones in the stamp: Bloomington's typical rent and typical home value. Change your rent, price and years, and the result can flip.
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Enter the rent, price and down payment you want. The stamp moves when those numbers move.
Is renting or buying cheaper in Bloomington?
Counting the money that comes back to you when you sell, renting is cheaper by $9,475 over 7 years. For the first 8 years, renting costs less. By year 9, owning catches up.
Renting. Owning. Running net cost, year by year.
Average rent compared with the mortgage payment in Bloomington
Rent and a mortgage payment aren't the whole story. Here are all the monthly costs at Bloomington's typical price, in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,763 | All of it, every month |
| Mortgage payment | $1,703 | $1,501 of it is interest in year 1 |
| Property tax | $211 | 0.81% of the value a year |
| Insurance | $102 | Census median for the city |
| Upkeep | $260 | 1% of the value a year |
| Owning, cash out | $2,276 | $202 of it builds equity |
| Lost return on the down payment | $508 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $130 | 3.5% of the price over 7 years |
| True cost of owning | $2,711 | Cash out, take out the equity part, then add the two lines above. |
How the Bloomington verdict adds up
- Typical home value Zillow ZHVI, September 2026
- $312,287
- Typical rent Zillow ZORI, September 2026
- $1,763 /mo
- Down payment: 20% avoids private mortgage insurance, and the engine doesn't model that.
- 20%
- Mortgage rate Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- FHFA home price index, Indiana, 1995 to 2025 shows home price growth.
- 3.7% per year
- Rent growth CPI rent of primary residence, growth by year 2006 to 2026
- 3.5% each year
- Savings return 60% S&P 500 with dividends, 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% each year
- Property tax Census ACS 2020-2024, Bloomington
- 0.81% of the value
- Insurance for the homeCensus ACS 2020-2024, Bloomington
- $102 a month
- Maintenance Fannie Mae, low end of the 1% to 4% range
- Each year, 1% of value
- Buying costs Freddie Mac, mid-range of 2% to 5%
- Of the price, 3.5%
- Costs of sellingAgent commission plus closing costs
- 6% of the price
What would change the Bloomington result?
Each line marks the point at which the 7-year verdict in Bloomington flips, with everything else held as it is.
Renting is the better deal when
- Annual home price growth falls below 4.1% (we use Indiana's long-run rate of 3.7%).
- The mortgage rate holds above 6.70%.
- Rent on a home like this comes in below $1,860 a month (here the typical rent is $1,763).
- Your move comes before year 9.
Buying is the better deal when
- Home prices grow at more than 4.1% a year.
- You lock in a mortgage rate under 6.70% (today's rate: 7.24%).
- You would pay over $1,860 a month to rent the same home.
- You remain for 9 years or longer.
How Bloomington compares with the other 812 cities
| Measure | Bloomington | Median city |
|---|---|---|
| Typical home value | $312,287 | $422,451 |
| Typical rent | $1,763 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.8 (#636 of 813) | 18.5 |
| Home prices, last 10 years | 6.3% a year | 6.2% a year |
| Rents, last 5 years | 4.9% a year | 4% a year |
| Property tax | 0.81% | 0.87% |
| Households that rent | 65% | 42% |
Data from: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Indiana cities
- Toss-up. Indianapolis, IN. It's close, but renting has a $2k lead.
- Rent. Noblesville, IN. Renting comes out ahead by $62k.
- Renting. Lafayette, IN. Renting comes out ahead by $24k.
- Renting. Greenwood, IN. Renting wins by $33k.