Rent vs buy in Collierville, TN
In Collierville, Tennessee, the typical rent is $1,891 /mo and the typical home price is $502,630.
Over 7 years, renting comes out ahead by $73k
Figures use 20% down and the mortgage rate available today, with Collierville's typical rent and home value as the basis. The break-even point: year 22.
A clearly labeled opinion with the math shown. Estimates, not quotes. Swap one number and the stamp shifts.
- Renting leads by
- $73k after 7 years
- Break-even point
- Year 22 when owning catches up
- What owning really costs
- $4,464 a month year 1, against $1,891 rent
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The stamp draws on Collierville's typical rent and home value as its inputs. The outcome may change with your rent, price and years.
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In Collierville, is it cheaper to rent or buy?
Count in the money you get back when you sell, and renting is cheaper by $72,843 over 7 years. For the first 21 years, renting costs less. By year 22, owning catches up.
Rent. Buy. Net cost so far, year by year.
Average rent compared with the mortgage payment in Collierville
Rent and the mortgage don't cover everything. All monthly costs for year 1 at Collierville's typical price follow.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,891 | All of it, every month |
| Mortgage payment | $2,740 | $2,415 of it is interest in year 1 |
| Property tax | $419 | 1% of the value a year |
| Insurance | $184 | Census median for the city |
| Upkeep | $419 | 1% of the value a year |
| Owning, cash out | $3,762 | $325 of it builds equity |
| Lost return on the down payment | $817 | The yearly return on the cash: 8.3% |
| Buying costs, spread out | $209 | 3.5% of the price over 7 years |
| True cost of owning | $4,464 | Subtract the equity portion from cash out, then include both entries listed earlier. |
The figures behind the Collierville verdict
- Typical value of a homeZillow ZHVI, September 2026
- $502,630
- What a typical rent costsZillow ZORI, September 2026
- $1,891 a month
- A 20% down payment avoids private mortgage insurance, which the calculation doesn't include.
- 20%
- Rate on the mortgageFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home prices: Tennessee, 1995 to 2025: FHFA home price index
- 4.7% each year
- Growth in rent: 2006 to 2026: CPI rent for primary residence, yearly growth
- 3.5% yearly
- Savings return: 60% S&P 500 with dividends, plus 40% 10-year Treasuries, rebalanced yearly, from 1928 to 2025
- 8.3% yearly
- Property tax details: Census ACS 2020-2024, Collierville
- 1% of the property's value.
- Home insurance details: Census ACS 2020-2024, Collierville
- $184 a month
- MaintenanceFannie Mae, 1% to 4%, low end
- 1% of the value a year
- Buying costsFreddie Mac, 2% to 5%, middle
- 3.5% of the price
- Selling costsAgent commission and closing costs
- 6% of the price
What would flip the result in Collierville?
Each line marks the point where the 7-year verdict for Collierville changes, with everything else left as it is.
Renting comes out ahead when
- We apply 4.7%, Tennessee's long-run figure, to home prices; growth stays below 6.4% a year.
- The rate on a mortgage stays above 4.65%.
- The typical local figure is $1,891, while a home like this rents below $2,670 each month.
- Before year 22, you move.
Buying comes out ahead when
- Home prices grow more quickly than 6.4% a year.
- A mortgage rate below 4.65% is what you lock in (today's is 7.24%).
- For the same home, you'd pay over $2,670 monthly in rent.
- You remain there for at least 22 years.
Collierville compared with the other 812 cities
| Measure | Collierville | Median city |
|---|---|---|
| Typical home value | $502,630 | $422,451 |
| Typical rent | $1,891 /mo | $1,837 /mo |
| Price-to-rent ratio | 22.2 (#237 of 813) | 18.5 |
| Home prices, last 10 years | 5.1% a year | 6.2% a year |
| Rents, last 5 years | 3.4% a year | 4% a year |
| Property tax | 1% | 0.87% |
| Households that rent | 20% | 42% |
Sources: Zillow ZHVI plus ZORI, Census ACS 2020-2024.
Other cities across Tennessee
- Rent. Nashville, TN. Renting comes out $24k ahead.
- Buy. Memphis, TN. Buying comes out $36k ahead.
- Rent. Knoxville, TN. Renting comes out $10k ahead.
- Rent. Chattanooga, TN. Renting comes out $11k ahead.
- Rent. Clarksville, TN. Renting comes out $19k ahead.
- Rent. Murfreesboro, TN. Renting comes out $36k ahead.
- Rent. Franklin, TN. Renting comes out $204k ahead.
- Buy. Johnson City, TN. Buying comes out $4k ahead.
- Buy. In Jackson, TN. Buying wins by $25k.
- For Hendersonville, TN, renting wins by $77k.
- Smyrna, TN: the $19k difference favors renting.
- Spring Hill, TN: the $45k difference favors renting.