Rent vs buy in Dallas, TX
In Dallas, Texas, typical rent is $1,604 /mo and typical home value is $303,442.
Renting saves $20k over 7 years
Using Dallas's typical rent and home value, the figures include 20% down and today's mortgage rate. The break-even point falls in year 12.
Clearly labeled opinion with the math shown. These are estimates, not quotes. The stamp updates when you change a number.
- Renting is ahead by
- $20k after 7 years
- Break-even point
- year 12 when owning catches up
- Full ownership cost
- $2,902 /mo year 1, against $1,604 rent
Change my numbers
The stamp is based on Dallas's typical home value and typical rent. Your rent, price and years can change the result.
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Is it cheaper to rent or buy in Dallas?
Over 7 years, renting costs $20,127 less, including the money returned when you sell. During the first 11 years, renting costs less. In year 12, owning catches up.
Renting. Owning. Net cost to date, grouped by year.
In Dallas: average rent vs mortgage payment
Year 1 includes every monthly cost at Dallas's typical price, not just rent and mortgage payments.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,604 | All of it, every month |
| Mortgage payment | $1,654 | $1,458 of it is interest in year 1 |
| Property tax | $400 | 1.58% of the value a year |
| Insurance | $172 | Census median for the city |
| Upkeep | $253 | 1% of the value a year |
| Owning, cash out | $2,479 | $196 of it builds equity |
| Lost return on the down payment | $493 | The cash would earn 8.3% each year |
| Buying costs, spread out | $126 | 3.5% of the price over 7 years |
| True cost of owning | $2,902 | Cash out, minus equity, plus both amounts listed above |
The figures used for Dallas's verdict
- Typical home value: Zillow ZHVI, September 2026
- $303,442
- Typical rent: Zillow ZORI, September 2026
- $1,604 /mo
- Private mortgage insurance is avoided with 20% down, but the engine doesn't model it.
- 20%
- Rate used for the mortgage: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth used for home prices: FHFA house price index, Texas, 1995 to 2025
- Each year: 4.7%
- What your savings earn1928 to 2025: 60% S&P 500 with dividends, 40% 10-year Treasuries, rebalanced yearly
- Each year: 8.3%
- Property tax data: Census ACS 2020-2024, Dallas
- Value times 1.58%
- Home insurance data: Census ACS 2020-2024, Dallas
- Monthly cost: $172
- Repair and upkeep costs: Fannie Mae, low end of 1% to 4%
- The annual cost equals 1% of value
- Purchase cost source: Freddie Mac, middle of 2% to 5%
- At 3.5% of price
- Selling costs: Agent commission plus closing costs.
- 6% of the price
Which change would reverse the Dallas result?
Each line shows where Dallas's 7-year result changes, with all other assumptions left as they are.
Renting is better when
- Growth in home prices stays below 5.5% each year; our calculation uses 4.7%, Texas's long-run rate.
- Interest on a mortgage stays higher than 6.06%.
- A similar home costs under $1,820 each month to rent, compared with the typical $1,604.
- Your move happens before year 12.
Buying comes out ahead when
- Home prices grow at over 5.5% a year.
- With today's rate at 7.24%, you lock in one below 6.06%.
- You'd pay more than $1,820 a month to rent the same home.
- You remain for 12 years or longer.
Dallas compared with the other 812 cities
| Measure | Dallas | Median city |
|---|---|---|
| Typical home value | $303,442 | $422,451 |
| Typical rent | $1,604 /mo | $1,837 /mo |
| Price-to-rent ratio | 15.8 (#577 of 813) | 18.5 |
| Home prices, last 10 years | 5.9% a year | 6.2% a year |
| Rents, last 5 years | 1.7% a year | 4% a year |
| Property tax | 1.58% | 0.87% |
| Households that rent | 58% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
More cities in Texas
- Too close to call. Houston, TX. Renting leads by $2k.
- Rent. San Antonio, TX. Renting is better by $10k.
- Rent. Fort Worth, TX. Renting is better by $17k.
- Rent. Austin, TX. Renting is better by $111k.
- Rent. Arlington, TX. Renting is better by $34k.
- Rent. Garland, TX. Renting comes out ahead by $12k.