Rent vs buy in Cleveland, TN
In Cleveland, Tennessee, the typical rent is $1,406 /mo and the typical home value is $308,369.
Renting comes out ahead by $10k over 7 years
Today's mortgage rate, 20% down and Cleveland's typical rent and home value are used here. The break-even point arrives in year 9.
A clearly labeled opinion with the math shown. These figures are estimates, not quotes. The stamp updates when you change a number.
- Renting leads by
- $10k after 7 years
- Break-even point
- year 9 when owning catches up
- Actual cost of ownership
- $2,615 /mo year 1, against $1,406 rent
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The stamp draws on Cleveland's typical rent and home value. The result can flip based on your rent, price and years.
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Is renting or buying cheaper in Cleveland?
Over 7 years, renting costs $9,955 less, including the money returned to you when you sell. For the first 8 years, renting costs less. In year 9, owning catches up with renting.
Renting is the choice. Owning is the choice. Net costs by year so far.
Average rent compared with mortgage payment in Cleveland
Rent and mortgage payments don't cover everything. At Cleveland's typical price, here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,406 | All of it, every month |
| Mortgage payment | $1,681 | $1,482 of it is interest in year 1 |
| Property tax | $149 | 0.58% of the value a year |
| Insurance | $97 | Census median for the city |
| Upkeep | $257 | 1% of the value a year |
| Owning, cash out | $2,184 | $199 of it builds equity |
| Lost return on the down payment | $501 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $128 | 3.5% of the price over 7 years |
| True cost of owning | $2,615 | Cash out minus the equity portion, plus the two costs listed above |
The Cleveland verdict, explained by the numbers
- Typical home value: Zillow ZHVI, September 2026
- $308,369
- Typical rental cost: Zillow ZORI, September 2026
- $1,406 each month
- A 20% down payment avoids private mortgage insurance, which the engine doesn't include.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesHouse price index from FHFA, Tennessee, 1995 to 2025
- 4.7% yearly
- Rent growthCPI measure for rent of primary residence, with yearly growth from 2006 to 2026
- Each year, 3.5%
- Savings return60% S&P 500, including dividends, plus 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- Each year, 8.3%
- Property tax: Census ACS 2020-2024, Cleveland
- 0.58% of the value
- Home insurance: Census ACS 2020-2024, Cleveland
- Each month, $97
- Maintenance: Fannie Mae, low end of 1% to 4%
- Each year, 1% of value
- Buying costsFreddie Mac, midpoint of 2% to 5%
- 3.5% of the purchase price
- Sale expenses: Agent commission plus closing costs
- 6% of the price
What would flip the result in Cleveland?
Cleveland's 7-year verdict changes at the point shown by each line, with everything else kept unchanged.
When renting wins
- Home prices increase by less than 5.1% each year (our calculation uses 4.7%, based on Tennessee's long-run average).
- The mortgage rate remains above 6.67%.
- A similar home rents below $1,510 each month (typical here: $1,406).
- Moving before year 9.
When buying wins
- Home prices rise at more than 5.1% a year.
- A mortgage rate below 6.67% is what you lock in; today's rate is 7.24%.
- The same home would cost over $1,510 monthly to rent.
- You remain 9 years or longer.
How Cleveland compares with the other 812 cities
| Measure | Cleveland | Median city |
|---|---|---|
| Typical home value | $308,369 | $422,451 |
| Typical rent | $1,406 /mo | $1,837 /mo |
| Price-to-rent ratio | 18.3 (#420 of 813) | 18.5 |
| Home prices, last 10 years | 7.2% a year | 6.2% a year |
| Rents, last 5 years | 4.1% a year | 4% a year |
| Property tax | 0.58% | 0.87% |
| Households that rent | 52% | 42% |
Data from Zillow ZHVI and ZORI, Census ACS 2020-2024.
Additional cities across Tennessee
- Rent. Nashville, TN. Renting leads by $24k.
- Buy. Memphis, TN. Buying leads by $36k.
- Rent. Knoxville, TN. Renting leads by $10k.
- Chattanooga, TN: renting is ahead by $11k.
- Clarksville, TN: renting is ahead by $19k.
- Murfreesboro, TN: renting is ahead by $36k.
- Franklin, TN: renting is ahead by $204k.
- For Johnson City, TN, buying leads by $4k.
- Jackson, TN: buying is ahead by $25k.
- Rent. In Hendersonville, TN, renting wins by $77k.
- Rent. In Smyrna, TN, renting wins by $19k.
- Rent. In Spring Hill, TN, renting wins by $45k.