Rent vs buy in Chicago, IL
In Chicago, Illinois, the typical rent is $2,311 /mo and the typical home price is $334,108 (Illinois).
It's a toss-up: the difference is $2,655 over 7 years
We start with Chicago's typical rent and home value, then apply 20% down and the mortgage rate of today. The break-even point arrives in year 7.
This is an opinion, clearly labeled, and the math is shown. These are estimates, not quotes. If you change a number, the stamp changes.
- Gap
- $3k after 7 years
- Break-even point
- year 7 when owning catches up
- Full cost of owning
- $3,079 /mo year 1, against $2,311 rent
Change my numbers
The stamp receives two inputs from Chicago's figures: typical rent and home value. Your rent, price and time period can change the result.
Do these numbers differ from the city's?
Type in your own rent, price and down payment. Those figures change the stamp.
Is it cheaper to rent or buy in Chicago?
After 7 years, the two choices are within $2,655 of one another, so small changes decide the result. In year 7, owning's net cost falls below renting's and remains lower.
Renting Owning Net cost by year so far.
Average rent compared with mortgage payment in Chicago
Rent and mortgage payments don't cover everything. At the typical price in Chicago's market, these are all monthly costs during year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,311 | All of it, every month |
| Mortgage payment | $1,822 | $1,606 of it is interest in year 1 |
| Property tax | $412 | 1.48% of the value a year |
| Insurance | $101 | Census median for the city |
| Upkeep | $278 | 1% of the value a year |
| Owning, cash out | $2,613 | $216 of it builds equity |
| Lost return on the down payment | $543 | What the cash would earn in a year at 8.3% |
| Buying costs, spread out | $139 | 3.5% of the price over 7 years |
| True cost of owning | $3,079 | Take cash out, subtract the equity portion, then add both lines listed above. |
A look at the numbers behind Chicago's verdict
- Typical home valueZillow ZHVI, September 2026
- $334,108
- Typical rentZillow ZORI, September 2026
- $2,311 /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, Illinois, 1995 to 2025
- 3.3% 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, Chicago
- 1.48% of value
- Home insuranceCensus ACS 2020-2024, Chicago
- $101 /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 change Chicago's result?
Each line shows where Chicago's 7-year verdict changes, with everything else held the same.
Renting costs less when
- Home prices grow by less than 3.2% each year. For this calculation, 3.3% is used as Illinois's long-run rate.
- Here, the mortgage rate holds above 7.38%.
- This kind of home rents for under $2,280 each month (the typical figure here is $2,311).
- Your move comes before year 7.
When buying wins
- Annual home-price growth runs above 3.2%.
- With today's rate at 7.24%, you lock one below 7.38%.
- You would pay more than $2,280 each month to rent the same home.
- Your stay lasts 7 years or more.
How Chicago compares with the other 812 cities
| Measure | Chicago | Median city |
|---|---|---|
| Typical home value | $334,108 | $422,451 |
| Typical rent | $2,311 /mo | $1,837 /mo |
| Price-to-rent ratio | 12.0 (#758 of 813) | 18.5 |
| Home prices, last 10 years | 3.5% a year | 6.2% a year |
| Rents, last 5 years | 6% a year | 4% a year |
| Property tax | 1.48% | 0.87% |
| Households that rent | 54% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Illinois
- Renting wins by $68k in Bloomington, IL.