Rent vs buy in DeSoto, TX
A typical home in DeSoto, Texas costs $319,395, while a typical rent is $2,131 /mo.
Over 7 years, buying comes out ahead by $17k.
The calculation applies DeSoto's typical rent and home value, plus 20% down and today's mortgage rate. You break even in year 6.
An opinion, clearly labelled, with the math shown. These are estimates, not quotes. The stamp updates whenever you change a number.
- Owning is ahead by
- $17k after 7 years
- Equal-cost point
- In year 6 when owning catches up
- Full cost of ownership
- $3,093 each month year 1, against $2,131 rent
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DeSoto's typical rent and home value drive the stamp. The result can flip based on your rent, your price and your years.
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Which costs less in DeSoto, renting or buying?
Over 7 years, buying saves $16,653 after counting the money you receive when you sell. In year 6, owning's net cost falls below renting's and remains lower.
Rent. Cost of owning. Net cost to date, by year.
Average rent compared with the mortgage payment in DeSoto
Monthly costs for year 1 at DeSoto's typical price go beyond rent and the mortgage. Here are all of them.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,131 | All of it, every month |
| Mortgage payment | $1,741 | $1,535 of it is interest in year 1 |
| Property tax | $442 | 1.66% of the value a year |
| Insurance | $198 | Census median for the city |
| Upkeep | $266 | 1% of the value a year |
| Owning, cash out | $2,647 | $206 of it builds equity |
| Lost return on the down payment | $519 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $133 | 3.5% of the price over 7 years |
| True cost of owning | $3,093 | Cash out, minus the equity portion, plus the two lines above |
Numbers behind DeSoto's result
- Typical home valueZillow ZHVI, September 2026
- $319,395
- Typical rentZillow ZORI, September 2026
- $2,131 /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, Texas, 1995 to 2025
- 4.7% 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, DeSoto
- 1.66% of value
- Home insuranceCensus ACS 2020-2024, DeSoto
- $198 /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
In DeSoto, what would flip it?
Each line shows where DeSoto's 7-year result changes, while all other factors stay as they are.
Renting costs less when
- Prices for homes grow at less than 4.0% a year (we apply 4.7% as the long-run rate for Texas's market).
- For the mortgage, the rate remains above 8.16%.
- For a home like this, the monthly rent is under $1,950. Here, the typical figure is $2,131.
- Moving before year 6.
Buying comes out ahead when
- Home prices rise by more than 4.0% a year.
- You secure a mortgage rate under 8.16% (the rate today is 7.24%).
- The same home costs over $1,950 monthly when you rent it.
- Staying for 6 years or more.
How DeSoto compares with the other 812 cities
| Measure | DeSoto | Median city |
|---|---|---|
| Typical home value | $319,395 | $422,451 |
| Typical rent | $2,131 /mo | $1,837 /mo |
| Price-to-rent ratio | 12.5 (#743 of 813) | 18.5 |
| Home prices, last 10 years | 6.2% a year | 6.2% a year |
| Rents, last 5 years | 3.9% a year | 4% a year |
| Property tax | 1.66% | 0.87% |
| Households that rent | 30% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across Texas
- Toss-up. Houston, TX. Renting has a $2k lead.
- Rent. San Antonio, TX. Renting gains a $10k advantage.
- Rent. Dallas, TX. Renting saves you $20k.
- Rent. Fort Worth, TX. Renting is ahead by $17k.
- Rent. Austin, TX. Renting comes out ahead by $111k.
- Toss-up. El Paso, TX. It's close, but buying is ahead by $2k.
- Rent. Arlington, TX. Renting comes out ahead by $34k.
- Buy. Corpus Christi, TX. Buying comes out ahead by $4k.
- Rent. Plano, TX. Renting comes out ahead by $105k.
- Toss-up. Lubbock, TX. It's close, but buying is ahead by $2k.
- Rent. Laredo, TX. Renting comes out ahead by $20k.
- Rent. Irving, TX. Renting comes out ahead by $36k.