Rent vs buy in Chapel Hill, NC
In North Carolina, the typical rent in Chapel Hill, North Carolina, is $1,723 monthly, and a typical home costs $621,909.
Renting comes out ahead by $162k over 7 years.
A 20% down payment and today's mortgage rate are paired with Chapel Hill's typical rent and its home value. There is no break-even within 30 years.
Our clearly labeled opinion shows the math. These figures are estimates, not quotes. Change any number, and the stamp will change.
- Renting is ahead by
- $162k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Full cost of owning
- $5,500 /mo year 1, against $1,723 rent
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Based on Chapel Hill's figures for typical rent and home value, the stamp makes its calculation. Different rent, price and time periods can change the result.
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Which costs less in Chapel Hill, renting or buying?
Across 7 years, renting costs $161,984 less after counting the money returned to you when you sell. In each year shown, renting has a lower net cost than owning, and owning never catches up within 30 years.
Rent. Buy. Net cost so far for each year.
Chapel Hill's average rent compared with its mortgage payment
Rent and mortgage payments don't tell the full story. These are all monthly expenses during year 1 using Chapel Hill's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,723 | All of it, every month |
| Mortgage payment | $3,391 | $2,989 of it is interest in year 1 |
| Property tax | $606 | 1.17% of the value a year |
| Insurance | $117 | Census median for the city |
| Upkeep | $518 | 1% of the value a year |
| Owning, cash out | $4,632 | $402 of it builds equity |
| Lost return on the down payment | $1,011 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $259 | 3.5% of the price over 7 years |
| True cost of owning | $5,500 | Cash paid, minus the equity portion, plus the two amounts above |
The figures behind Chapel Hill's result
- Typical home valueZillow ZHVI, September 2026
- $621,909
- Typical rentZillow ZORI, September 2026
- $1,723 /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, North Carolina, 1995 to 2025
- 4.4% 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, Chapel Hill
- 1.17% of value
- Home insuranceCensus ACS 2020-2024, Chapel Hill
- $117 /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
What would reverse the result in Chapel Hill?
Each line shows where Chapel Hill's 7-year result changes, with all other factors unchanged.
Renting comes out ahead when
- For this calculation, we apply 4.4%, which is North Carolina's long-run rate, and home prices grow below 7.4% annually.
- The mortgage rate remains higher than 2.52%.
- Renting a similar home costs under $3,460 a month, while the typical cost here is $1,723.
- Any move during the next 30 years leaves owning behind at these numbers.
Buying comes out ahead when
- Home prices increase by more than 7.4% each year.
- You fix a mortgage rate under 2.52%, while today's rate is 7.24%.
- If you rented that same home, you'd pay more than $3,460 a month.
How Chapel Hill compares with 812 other cities
| Measure | Chapel Hill | Median city |
|---|---|---|
| Typical home value | $621,909 | $422,451 |
| Typical rent | $1,723 /mo | $1,837 /mo |
| Price-to-rent ratio | 30.1 (#68 of 813) | 18.5 |
| Home prices, last 10 years | 5.9% a year | 6.2% a year |
| Rents, last 5 years | 3.1% a year | 4% a year |
| Property tax | 1.17% | 0.87% |
| Households that rent | 53% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other North Carolina cities
- Rent. In Charlotte, NC, renting wins by $30k.
- Rent. In Raleigh, NC, renting wins by $61k.
- For Greensboro, NC, it's a toss-up, with renting ahead by $3k.
- Rent. In Durham, NC, renting wins by $40k.
- Buying wins by $6k in Winston-Salem, NC.
- Buying wins by $9k in Fayetteville, NC.
- Rent. In Cary, NC, renting wins by $131k.
- Rent. In Wilmington, NC, renting wins by $47k.
- Buying wins by $4k in High Point, NC.
- Renting wins by $20k in Concord, NC.
- Buy. In Greenville, NC, buying wins by $13k.
- Renting wins by $53k in Asheville, NC.