Rent vs buy in Davis, CA
In Davis, California, the typical rent is $2,394 /mo, while the typical home costs $827,457.
Renting comes out ahead by $115k over 7 years
For Davis's typical rent and home value, the calculation uses today's mortgage rate and 20% down. The break-even point comes in year 19.
This is clearly labeled opinion with the math shown. These are estimates, not quotes. The stamp updates when you change a number.
- Renting leads by
- $115k after 7 years
- Break-even point
- year 19 when owning catches up
- Full cost of ownership
- $7,007 /mo year 1, against $2,394 rent
Change my numbers
The stamp draws on Davis's numbers for typical rent and home value. Your rent, price and years can change the result.
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Enter the rent, home price and down payment you want to use. The stamp updates when those figures change.
Would renting or buying cost less in Davis?
Over 7 years, renting costs $115,082 less, including the money you get back when you sell. For the first 18 years, renting costs less. In year 19, owning catches up.
Renting. Owning. Net cost by year so far.
Comparing average rent with mortgage payments in Davis
Rent and the mortgage leave out part of the story. At Davis's typical price, here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,394 | All of it, every month |
| Mortgage payment | $4,511 | $3,976 of it is interest in year 1 |
| Property tax | $552 | 0.8% of the value a year |
| Insurance | $100 | Census median for the city |
| Upkeep | $690 | 1% of the value a year |
| Owning, cash out | $5,852 | $535 of it builds equity |
| Lost return on the down payment | $1,345 | At 8.3% a year, that's what the cash could earn. |
| Buying costs, spread out | $345 | 3.5% of the price over 7 years |
| True cost of owning | $7,007 | Subtract the equity part from cash out, then add the two lines above. |
The Davis verdict in numbers
- Typical home valueZillow ZHVI, September 2026
- $827,457
- Typical rentZillow ZORI, September 2026
- $2,394 /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, Davis
- 0.8% of value
- Home insuranceCensus ACS 2020-2024, Davis
- $100 /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 Davis result?
Each line marks where the Davis 7-year verdict changes, and every other input remains as it is.
When renting wins
- Home prices grow more slowly than 6.9% a year (we use California's long-run rate of 5.3%).
- For mortgages, the rate remains above 4.75%.
- Rent for a home like this is under $3,630 each month (typical here: $2,394).
- Your move happens before year 19.
When buying wins
- Home prices rise by more than 6.9% each year.
- You lock in a rate below 4.75%; today's rate is 7.24%.
- The monthly rent for that same home would exceed $3,630.
- You remain for 19 years or longer.
How Davis compares with the other 812 cities
| Measure | Davis | Median city |
|---|---|---|
| Typical home value | $827,457 | $422,451 |
| Typical rent | $2,394 /mo | $1,837 /mo |
| Price-to-rent ratio | 28.8 (#81 of 813) | 18.5 |
| Home prices, last 10 years | 3.8% a year | 6.2% a year |
| Rents, last 5 years | 3.8% a year | 4% a year |
| Property tax | 0.80% | 0.87% |
| Households that rent | 56% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in California
- Rent. Los Angeles, CA. Rent comes out ahead by $111k.
- Rent. San Diego, CA. Rent comes out ahead by $108k.
- Rent. San Jose, CA. Rent comes out ahead by $210k.
- Rent. San Francisco, CA. Rent comes out ahead by $128k.
- Buy. Fresno, CA. Buying comes out ahead by $22k.
- Close call. Sacramento, CA. Neither option clearly wins, but renting holds a $3k lead.
- Rent wins. Long Beach, CA. The result gives renting a $111k lead.
- Rent. Oakland, CA. Rent comes out ahead by $44k.
- Buy. Bakersfield, CA. Buying comes out ahead by $11k.
- Rent. Anaheim, CA. Rent comes out ahead by $115k.
- Buy. Stockton, CA. Buying comes out ahead by $16k.
- Rent. Riverside, CA. Rent comes out ahead by $27k.