Rent vs buy in Centennial, CO
For Centennial, Colorado, the typical rent is $2,203 /mo and the typical home is $626,600.
Over 7 years, renting comes out ahead by $53k.
The figures use Centennial's typical rent and home value, a 20% down payment and today's mortgage rate. Break-even point: year 13.
Opinion with a clear label and the math shown. Estimates, not quotes. If you change a number, the stamp updates.
- Renting leads by
- $53k after 7 years
- Break-even point
- year 13 when owning catches up
- Full cost of home ownership
- $5,296 /mo year 1, against $2,203 rent
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Centennial's typical rent and home value provide the figures used in the stamp. A different result can come from your rent, price and years.
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Is it cheaper to rent or buy in Centennial?
Over 7 years, renting costs $53,322 less when you include the money returned after you sell. For the first 12 years, renting costs less. In year 13, home ownership catches up.
Renting. Owning. Net cost to date, by year.
Average rent compared with mortgage payment in Centennial
Rent and the mortgage don't tell the whole story. Here are all monthly costs for year 1 at Centennial's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,203 | All of it, every month |
| Mortgage payment | $3,416 | $3,011 of it is interest in year 1 |
| Property tax | $287 | 0.55% of the value a year |
| Insurance | $196 | Census median for the city |
| Upkeep | $522 | 1% of the value a year |
| Owning, cash out | $4,422 | $405 of it builds equity |
| Lost return on the down payment | $1,018 | The yearly amount the cash would earn at 8.3% |
| Buying costs, spread out | $261 | 3.5% of the price over 7 years |
| True cost of owning | $5,296 | Subtract the equity portion from cash out, then add the two amounts listed above. |
The figures behind Centennial's result
- Typical home value: Zillow ZHVI, September 2026
- $626,600
- Typical rent: Zillow ZORI, September 2026
- $2,203 /mo
- Down payment: at 20%, private mortgage insurance isn't needed, and the engine doesn't model it
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home prices: FHFA house price index, Colorado, 1995 to 2025
- Each year: 5.2%
- Growth in rentYearly growth in CPI rent for a primary residence, 2006 to 2026
- Each year: 3.5%
- Return used for savings: 60% S&P 500 including dividends plus 40% 10-year Treasuries, with yearly rebalancing, 1928 to 2025
- Each year: 8.3%
- Property tax: Census data, ACS 2020-2024, Centennial
- 0.55% of the value
- Home insurance: Census data, ACS 2020-2024, Centennial
- $196 /mo
- Maintenance: Fannie Mae, low end of 1% to 4%
- Each year: 1% of value
- Purchase costs Freddie Mac's 2% to 5% midpoint
- Applied to the price, the rate is 3.5%.
- Selling costs: Agent commission plus closing costs
- 6% of the price
What would flip the result in Centennial?
Each line shows the threshold that changes Centennial's 7-year verdict while all other factors stay as they are.
Renting is the better choice when
- Home prices rise by less than 6.2% each year, while the calculation applies Colorado's long-run rate of 5.2%.
- Rates remain higher than 5.73% for the mortgage.
- A similar home rents for less than $2,770 each month; the typical rent here is $2,203.
- Your move happens before year 13.
Buying is the better choice when
- Home prices increase by more than 6.2% a year.
- You secure a mortgage rate under 5.73%, compared with today's 7.24%.
- The monthly rent for that same home would exceed $2,770.
- You remain for 13 years or more.
How Centennial compares with 812 other cities
| Measure | Centennial | Median city |
|---|---|---|
| Typical home value | $626,600 | $422,451 |
| Typical rent | $2,203 /mo | $1,837 /mo |
| Price-to-rent ratio | 23.7 (#180 of 813) | 18.5 |
| Home prices, last 10 years | 4.6% a year | 6.2% a year |
| Rents, last 5 years | 2.1% a year | 4% a year |
| Property tax | 0.55% | 0.87% |
| Households that rent | 19% | 42% |
Data comes from Zillow ZHVI and ZORI, Census ACS 2020-2024.
Additional Colorado cities
- In Denver, CO, renting wins by $37k.
- In Colorado Springs, CO, renting wins by $17k.
- In Aurora, CO, renting wins by $22k.
- In Fort Collins, CO, renting wins by $41k.
- Lakewood, CO. Renting comes out ahead by $54k.
- Thornton, CO. Renting comes out ahead by $26k.
- Arvada, CO. Renting comes out ahead by $47k.
- Westminster, CO. Renting comes out ahead by $34k.
- Greeley, CO. Renting comes out ahead by $33k.
- In Pueblo, CO, buying wins by $5k.
- In Boulder, CO, renting wins by $147k.
- In Longmont, CO, renting wins by $45k.