Rent vs buy in Bloomington, MN
In Bloomington, Minnesota, the typical rent is $1,681 /mo and the typical home price is $360,034.
Renting saves $35k over 7 years
Using Bloomington's typical rent, its typical home value, a 20% down payment and today's mortgage rate. The break-even year is 15.
Clearly labelled an opinion, with the math shown. These figures are estimates, not quotes. Adjust one number and the stamp changes.
- Ahead with renting
- $35k after 7 years
- Point of break-even
- Year 15 when owning catches up
- Actual cost of owning
- Each month: $3,215 year 1, against $1,681 rent
Change my numbers
The numbers there come from Bloomington's typical rent and typical home value. Your own rent, price and years can flip the stamp.
Do these numbers differ from the city's?
Enter a rent, a price and a down payment of your own. The stamp updates to match them.
Is buying or renting cheaper in Bloomington?
Over 7 years, renting costs $35,112 less when you include the money you receive when you sell. For the first 14 years, renting costs less. By year 15, owning catches up.
The choice is renting. The choice is owning. Net cost to date, year by year.
Average rent compared with the mortgage payment in Bloomington
Rent and the mortgage don't tell the whole story. Here are all the monthly costs in year 1 using Bloomington's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,681 | All of it, every month |
| Mortgage payment | $1,963 | $1,730 of it is interest in year 1 |
| Property tax | $321 | 1.07% of the value a year |
| Insurance | $129 | Census median for the city |
| Upkeep | $300 | 1% of the value a year |
| Owning, cash out | $2,713 | $233 of it builds equity |
| Lost return on the down payment | $585 | The yearly return on that cash: 8.3% |
| Buying costs, spread out | $150 | 3.5% of the price over 7 years |
| True cost of owning | $3,215 | Cash out, minus the equity portion, plus the two amounts above |
Numbers behind Bloomington's verdict
- Typical home valueZillow ZHVI, September 2026
- $360,034
- Typical rentZillow ZORI, September 2026
- $1,681 /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, Minnesota, 1995 to 2025
- 4.3% 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, Bloomington
- 1.07% of value
- Home insuranceCensus ACS 2020-2024, Bloomington
- $129 /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
Which change would flip the Bloomington result?
In Bloomington, each line marks where the 7-year verdict changes, while everything else remains unchanged
Renting comes out ahead when
- Annual home price growth stays under 5.5% a year (our calculation uses Minnesota's long-run rate of 4.3%).
- A mortgage rate that stays above 5.50%.
- Rent for a home like this runs under $2,060 a month; the typical figure here is $1,681.
- Before year 15, you move.
Owning is the better deal when
- Each year, home prices grow faster than 5.5%.
- Your locked mortgage rate sits below 5.50%; today's rate is 7.24%.
- Monthly rent for the same home would cost more than $2,060.
- You stay for 15 years or more.
How Bloomington compares with the other 812 cities
| Measure | Bloomington | Median city |
|---|---|---|
| Typical home value | $360,034 | $422,451 |
| Typical rent | $1,681 /mo | $1,837 /mo |
| Price-to-rent ratio | 17.8 (#438 of 813) | 18.5 |
| Home prices, last 10 years | 4.5% a year | 6.2% a year |
| Rents, last 5 years | 2.8% a year | 4% a year |
| Property tax | 1.07% | 0.87% |
| Households that rent | 34% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Minnesota
- Renting wins by $17k in Minneapolis, MN.
- Renting wins by $21k in St. Paul, MN.
- Renting wins by $32k in Rochester, MN.
- Renting wins by $28k in Duluth, MN.
- Renting wins by $41k in Brooklyn Park, MN.
- Renting wins by $37k in Woodbury, MN.
- Renting wins by $88k in Plymouth, MN.
- Renting wins by $58k in Lakeville, MN.
- Renting wins by $6k in Blaine, MN.
- Renting wins by $20k in Maple Grove, MN.
- Renting wins by $22k in St. Cloud, MN.
- Renting wins by $52k in Eagan, MN.