Rent vs buy in Chico, CA
In Chico, California, the typical rent is $1,561 /mo and the typical home costs $458,244.
Renting comes out ahead by $45k over 7 years
Today's mortgage rate and 20% down are applied to Chico's typical figures for rent and home value. Break-even lands at year 14.
An opinion, clearly labelled, with the math included. These are estimates, not quotes. Change one number, and the stamp changes with it.
- Renting is ahead by
- $45k after 7 years
- Break-even point
- Year 14 when owning catches up
- What owning really costs
- $3,920 per month year 1, against $1,561 rent
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Renting or buying in Chico: which costs less?
Counting what you get back when you sell, renting costs $44,938 less over 7 years. For the first 13 years, renting costs less. In year 14, owning catches up.
Rent. Own. Net cost up to now, by year.
In Chico: average rent compared with the mortgage payment
There's more to the picture than rent and the mortgage. Here are all the monthly costs for year 1, at Chico's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,561 | All of it, every month |
| Mortgage payment | $2,498 | $2,202 of it is interest in year 1 |
| Property tax | $298 | 0.78% of the value a year |
| Insurance | $102 | Census median for the city |
| Upkeep | $382 | 1% of the value a year |
| Owning, cash out | $3,280 | $296 of it builds equity |
| Lost return on the down payment | $745 | What your cash would earn yearly at 8.3% |
| Buying costs, spread out | $191 | 3.5% of the price over 7 years |
| True cost of owning | $3,920 | Cash out, minus the equity share, plus the two lines above |
The numbers that drive the Chico verdict
- Typical home valueZillow ZHVI, September 2026
- $458,244
- Typical rentZillow ZORI, September 2026
- $1,561 /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, California, 1995 to 2025
- 5.3% 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, Chico
- 0.78% of value
- Home insuranceCensus ACS 2020-2024, Chico
- $102 /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 could change the Chico verdict?
Every line marks the point where Chico's 7-year verdict changes. Everything else stays as it is.
Renting comes out ahead when
- Home prices grow less than 6.4% a year. For that we use California's long-run rate of 5.3%.
- The rate on your mortgage holds above 5.49%.
- Renting a home like this costs under $2,040 a month. Here the typical figure is $1,561.
- Your move happens before year 14.
Buying comes out ahead when
- Home prices rise by more than 6.4% each year.
- You secure a mortgage rate under 5.49% (today's is 7.24%).
- You'd pay over $2,040 a month to rent the same home.
- You remain there for 14 years or more.
Chico compared with the other 812 cities
| Measure | Chico | Median city |
|---|---|---|
| Typical home value | $458,244 | $422,451 |
| Typical rent | $1,561 /mo | $1,837 /mo |
| Price-to-rent ratio | 24.5 (#156 of 813) | 18.5 |
| Home prices, last 10 years | 4.2% a year | 6.2% a year |
| Rents, last 5 years | 2.4% a year | 4% a year |
| Property tax | 0.78% | 0.87% |
| Households that rent | 57% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Additional cities in California
- Renting. Los Angeles, CA. Renting comes out ahead by $111k.
- Rent. San Diego, CA. Renting comes out ahead by $108k.
- Rent. San Jose, CA. Renting comes out ahead by $210k.
- Rent. San Francisco, CA. Renting comes out ahead by $128k.
- Buy. Fresno, CA. Buying comes out ahead by $22k.