Rent vs buy in Dearborn Heights, MI
In Dearborn Heights, Michigan, typical rent is $1,447 /mo and typical home price is $212,637.
Over 7 years, the difference is $2,471, making this a toss-up.
Using Dearborn Heights's typical rent, the typical home value, 20% down and today's mortgage rate. The break-even point is year 7.
Clearly labeled opinion with the math shown. These are estimates, not quotes. Adjust any number and the stamp updates.
- Gap
- $2k after 7 years
- Break-even point
- Year 7 when owning catches up
- Owning's true cost
- $2,016 /mo year 1, against $1,447 rent
Change my numbers
The stamp relies on the typical rent and home value in Dearborn Heights's market. Figures for your rent, price and years can flip it.
Do your numbers differ from the city's?
Enter the rent, price and down payment you want to use. Your entries update the stamp.
Is renting or buying cheaper in Dearborn Heights?
At the end of 7 years, the two paths are within $2,471 of each other. Small changes decide the result. In year 7, owning's net cost falls below renting's and remains lower.
The renting choice. Cost of owning Net cost to date, shown by year.
Dearborn Heights: average rent compared with mortgage payment
The full picture includes costs beyond rent and the mortgage. At Dearborn Heights's typical price, here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,447 | All of it, every month |
| Mortgage payment | $1,159 | $1,022 of it is interest in year 1 |
| Property tax | $291 | 1.64% of the value a year |
| Insurance | $92 | Census median for the city |
| Upkeep | $177 | 1% of the value a year |
| Owning, cash out | $1,719 | $137 of it builds equity |
| Lost return on the down payment | $346 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $89 | 3.5% of the price over 7 years |
| True cost of owning | $2,016 | The two lines above plus cash out, less the equity part |
Dearborn Heights verdict: the numbers behind it
- Typical home valueZillow ZHVI, September 2026
- $212,637
- Typical rentZillow ZORI, September 2026
- $1,447 /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, Michigan, 1995 to 2025
- 3.8% 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, Dearborn Heights
- 1.64% of value
- Home insuranceCensus ACS 2020-2024, Dearborn Heights
- $92 /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 would flip the Dearborn Heights outcome?
Each line marks a change in the 7-year verdict for Dearborn Heights, while all other factors stay the same.
When renting wins
- Home prices rise by less than 3.6% each year (3.8% is Michigan's long-run rate, which we use).
- The mortgage rate remains above 7.45%.
- Rent on a home like this comes in below $1,420 a month (the typical figure here is $1,447).
- Moving happens before year 7.
When buying wins
- Home prices increase by more than 3.6% a year.
- You secure a mortgage rate under 7.45% (today's is 7.24%).
- If you rented this same home, you'd pay more than $1,420 each month.
- You remain there for 7 years or longer.
Dearborn Heights compared with 812 other cities
| Measure | Dearborn Heights | Median city |
|---|---|---|
| Typical home value | $212,637 | $422,451 |
| Typical rent | $1,447 /mo | $1,837 /mo |
| Price-to-rent ratio | 12.2 (#756 of 813) | 18.5 |
| Home prices, last 10 years | 8.1% a year | 6.2% a year |
| Rents, last 5 years | 5.1% a year | 4% a year |
| Property tax | 1.64% | 0.87% |
| Households that rent | 30% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Michigan
- Buy. Buying wins by $72k in Detroit, MI.
- Rent. Renting wins by $20k in Grand Rapids, MI.
- Buy. Warren, MI. Buying comes out $7k ahead.
- Rent. Sterling Heights, MI. Renting comes out $32k ahead.
- Rent. Ann Arbor, MI. Renting comes out $124k ahead.
- Toss-up. Lansing, MI. Buying leads by $2k, but it's a toss-up.
- Buy. Dearborn, MI. Buying comes out $18k ahead.
- Rent. Livonia, MI. Renting comes out $26k ahead.
- Rent. Troy, MI. Renting comes out $89k ahead.
- Rent. Farmington Hills, MI. Renting comes out $95k ahead.
- Rent. Westland, MI. Renting comes out $7k ahead.
- Buy. Flint, MI. Buying comes out $39k ahead.