Rent vs buy in Dearborn, MI
A typical home in Dearborn, Michigan is valued at $247,561, while typical rent is $1,861 /mo.
Buying comes out ahead by $18k over 7 years
Using Dearborn's typical rent and home value, the calculation includes 20% down and today's mortgage rate. The break-even point arrives in year 5.
Opinion, clearly labeled, with the math shown. These are estimates, not quotes. Adjust a number, and the stamp will change.
- Owning leads by
- $18k after 7 years
- Break-even point
- At year 5 when owning catches up
- What owning really costs
- $2,362 /mo year 1, against $1,861 rent
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Dearborn's typical rent and home value provide the starting point for the stamp. Your rent, price and number of years can reverse the result.
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Would renting or buying cost less in Dearborn?
Across 7 years, buying costs $17,856 less once you count the money returned when you sell. Owning's net cost falls below renting's in year 5 and remains lower.
Renting. Owning. Net cost by year so far.
Average rent compared with mortgage payment in Dearborn
Rent and the mortgage don't tell the whole story. Here are all monthly costs for year 1 at Dearborn's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,861 | All of it, every month |
| Mortgage payment | $1,350 | $1,190 of it is interest in year 1 |
| Property tax | $363 | 1.76% of the value a year |
| Insurance | $97 | Census median for the city |
| Upkeep | $206 | 1% of the value a year |
| Owning, cash out | $2,016 | $160 of it builds equity |
| Lost return on the down payment | $402 | At 8.3% a year, what the cash would earn |
| Buying costs, spread out | $103 | 3.5% of the price over 7 years |
| True cost of owning | $2,362 | Subtract the equity portion from cash out, then add both figures listed above. |
Numbers behind the Dearborn result
- Typical home valueZillow ZHVI, September 2026
- $247,561
- Typical rentZillow ZORI, September 2026
- $1,861 /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
- 1.76% of value
- Home insuranceCensus ACS 2020-2024, Dearborn
- $97 /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 change the Dearborn result?
Every line marks where the 7-year Dearborn verdict changes, with everything else held constant.
When renting wins
- Home prices rise more slowly than 2.8% each year, while our calculation uses 3.8%, Michigan's long-term rate.
- A mortgage rate above 8.51% remains in place
- For a home like this, the rent comes to under $1,670 a month, while the typical figure here is $1,861.
- Your move comes before year 5.
When buying wins
- Home prices rise faster than 2.8% a year.
- You secure a mortgage rate under 8.51% (today's is 7.24%).
- The same home would cost more than $1,670 a month to rent.
- You remain for 5 years or longer.
Dearborn compared with 812 other cities
| Measure | Dearborn | Median city |
|---|---|---|
| Typical home value | $247,561 | $422,451 |
| Typical rent | $1,861 /mo | $1,837 /mo |
| Price-to-rent ratio | 11.1 (#778 of 813) | 18.5 |
| Home prices, last 10 years | 7.7% a year | 6.2% a year |
| Rents, last 5 years | 3.4% a year | 4% a year |
| Property tax | 1.76% | 0.87% |
| Households that rent | 32% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Michigan cities
- Buy. Detroit, MI. Buying saves you $72k.
- Rent. Grand Rapids, MI. Renting saves you $20k.
- Buy. Warren, MI. Buying saves you $7k.
- Rent. Sterling Heights, MI. Renting saves you $32k.
- Rent. Ann Arbor, MI. Renting saves you $124k.
- Toss-up. Lansing, MI. It's close, but buying leads by $2k.
- Rent. Livonia, MI. Renting saves you $26k.
- Rent. Troy, MI. Renting saves you $89k.
- Rent. Farmington Hills, MI. Renting saves you $95k.
- Rent. Westland, MI. Renting saves you $7k.
- Buy. Flint, MI. Buying saves you $39k.
- Rent. Wyoming, MI. The advantage for renting is $23k.