Rent vs buy in Cambridge, MA
In Cambridge, Massachusetts, the typical rent is $3,438 /mo and the typical home costs $1,019,246.
Renting costs $83k less over 7 years
Using Cambridge's typical rent and home value, plus 20% down and today's mortgage rate. Year 13 is when the costs balance.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. If you change a number, the stamp changes too.
- Rent leads by
- $83k after 7 years
- Break-even point
- In year 13 when owning catches up
- What owning really costs
- $8,317 monthly year 1, against $3,438 rent
Change my numbers
Cambridge's typical rent and home value feed into the stamp. Different rent, price and time figures can reverse the result.
Do your numbers differ from the city's?
Enter your rent, price and down payment figures. Your entries change the stamp.
Is it cheaper to rent or buy in Cambridge?
Over 7 years, renting costs $82,709 less, including money returned to you when you sell. For the first 12 years, renting costs less. Ownership catches up during year 13.
The renting option. The owning option. Net cost by year so far.
Average Cambridge rent compared with mortgage payment
All monthly expenses appear here for year 1 at Cambridge's typical price, not just rent and mortgage payments.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,438 | All of it, every month |
| Mortgage payment | $5,557 | $4,898 of it is interest in year 1 |
| Property tax | $374 | 0.44% of the value a year |
| Insurance | $115 | Census median for the city |
| Upkeep | $849 | 1% of the value a year |
| Owning, cash out | $6,895 | $659 of it builds equity |
| Lost return on the down payment | $1,657 | The yearly return on cash at 8.3% |
| Buying costs, spread out | $425 | 3.5% of the price over 7 years |
| True cost of owning | $8,317 | Cash out, minus the equity portion, plus both entries listed above |
Cambridge verdict: the numbers behind it
- Typical home valueZillow ZHVI, September 2026
- $1,019,246
- Typical rentZillow ZORI, September 2026
- $3,438 /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, Massachusetts, 1995 to 2025
- 5.1% 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, Cambridge
- 0.44% of value
- Home insuranceCensus ACS 2020-2024, Cambridge
- $115 /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 reverse Cambridge's result?
The 7-year verdict in Cambridge changes at the point shown on each line, with everything else staying as it is.
Renting has the advantage when
- This condition occurs with yearly home-price growth under 6.0%; the rate used is 5.1%, Massachusetts's long-run rate.
- When the mortgage rate remains above 5.80%, this condition applies.
- A similar home rents for under $4,320 a month (the local typical rent is $3,438).
- You make your move before year 13.
Buying has the advantage when
- Home prices increase by more than 6.0% each year.
- With today's rate at 7.24%, you secure a mortgage rate below 5.80%.
- Renting that home would require you to pay more than $4,320 each month.
- You stay for 13 years or longer.
How Cambridge compares with the other 812 cities
| Measure | Cambridge | Median city |
|---|---|---|
| Typical home value | $1,019,246 | $422,451 |
| Typical rent | $3,438 /mo | $1,837 /mo |
| Price-to-rent ratio | 24.7 (#150 of 813) | 18.5 |
| Home prices, last 10 years | 3.1% a year | 6.2% a year |
| Rents, last 5 years | 4.1% a year | 4% a year |
| Property tax | 0.44% | 0.87% |
| Households that rent | 67% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Additional cities in Massachusetts
- Rent. Boston, MA. There, renting wins by $10k.
- Rent. Worcester, MA. There, renting wins by $8k.
- Buy. Springfield, MA. There, buying wins by $18k.
- Rent. Lowell, MA. There, renting wins by $9k.
- Rent. Brockton, MA. There, renting wins by $19k.
- Rent. Lynn, MA. There, renting wins by $45k.
- Renting costs less. Quincy, MA comes out ahead by $51k.
- Renting costs less. New Bedford, MA shows an advantage of $40k.
- Renting costs less. Fall River, MA shows an advantage of $29k.
- Renting costs less. Newton, MA shows an advantage of $317k.
- The result is close. Lawrence, MA puts renting ahead by $2k.
- Rent. Somerville, MA. There, renting wins by $65k.