Rent vs buy in Downey, CA
In Downey, California, the typical rent is $2,257 /mo and the typical home is $879,552.
Renting comes out ahead by $138k over 7 years
Using Downey's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point lands in year 21.
An opinion that's clearly labelled, with the math shown. These are estimates, not quotes. Adjust a number and the stamp shifts.
- Renting is ahead by
- $138k after 7 years
- The break-even point
- Year 21 when owning catches up
- What owning really costs
- $7,336 per month year 1, against $2,257 rent
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Is it cheaper to rent or buy in Downey?
Counting the money that comes back to you when you sell, renting is cheaper by $138,339 over 7 years. For the first 20 years, renting stays cheaper. In year 21, owning catches up.
Rent. The owning side. Running net cost, year by year.
Downey's average rent compared with the mortgage payment
Rent and mortgage payments cover only part of the story. At Downey's typical price, these are all monthly expenses during year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,257 | All of it, every month |
| Mortgage payment | $4,795 | $4,227 of it is interest in year 1 |
| Property tax | $491 | 0.67% of the value a year |
| Insurance | $89 | Census median for the city |
| Upkeep | $733 | 1% of the value a year |
| Owning, cash out | $6,108 | $569 of it builds equity |
| Lost return on the down payment | $1,430 | What the cash would earn each year, at 8.3%. |
| Buying costs, spread out | $366 | 3.5% of the price over 7 years |
| True cost of owning | $7,336 | Cash paid out, minus the equity portion, plus the two lines above |
Downey's verdict in numbers
- Typical home value Zillow, ZHVI, September 2026
- $879,552
- Rent, typicalZillow ZORI, September 2026
- $2,257 a month
- Down payment20% avoids private mortgage insurance, and the engine does not model it.
- 20%
- Mortgage rate Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index data, California, 1995 to 2025
- 5.3% each year
- Rent growth CPI rent of primary residence, growth by year 2006 to 2026
- 3.5% each year
- Return on savings 40% 10-year Treasuries and 60% S&P 500 with dividends, rebalanced yearly, 1928 to 2025
- 8.3% yearly
- Property tax Census ACS 2020-2024, Downey
- A rate of 0.67% applies to value.
- Home insurance Census ACS 2020-2024, Downey
- $89 a month
- Maintenance Fannie Mae, low end of 1% to 4%
- A yearly 1% of value
- Buying costs Freddie Mac, halfway point of the 2% to 5% range
- 3.5% of the purchase price
- Selling costs Agent commission and closing costs
- 6% of the price
What would change the result in Downey?
Each line marks the point where the 7-year result for Downey changes, and everything else stays the same.
Renting wins if
- Growth in home prices is below 7.0% a year; we use California's long-run rate of 5.3%.
- The mortgage rate remains above 4.42%.
- Renting a similar home costs less than $3,740 each month (local typical rent: $2,257).
- You move before year 21 comes.
When buying wins
- Annual home price growth exceeds 7.0%.
- You secure a mortgage rate under 4.42% (today's is 7.24%).
- The monthly rent on that same home would run above $3,740.
- You remain in place for at least 21 years.
Downey compared with the other 812 cities
| Measure | Downey | Median city |
|---|---|---|
| Typical home value | $879,552 | $422,451 |
| Typical rent | $2,257 /mo | $1,837 /mo |
| Price-to-rent ratio | 32.5 (#46 of 813) | 18.5 |
| Home prices, last 10 years | 6.2% a year | 6.2% a year |
| Rents, last 5 years | 4.4% a year | 4% a year |
| Property tax | 0.67% | 0.87% |
| Households that rent | 49% | 42% |
Data from Zillow ZHVI, ZORI, Census ACS 2020-2024.
California's other cities
- Renting. Los Angeles, CA. Renting comes out ahead by $111k.
- Rent. San Diego, CA. Ahead by $108k for renting.
- Renting. San Jose, CA. Ahead by $210k.
- Renting. San Francisco, CA. Ahead by $128k.
- Buy. Fresno, CA. Ahead by $22k for buying.
- Toss-up. Sacramento, CA. Renting leads by $3k in a toss-up.
- Rent. Long Beach, CA. Ahead by $111k for renting.
- Renting. Oakland, CA. Ahead by $44k.
- Buying. Bakersfield, CA. Ahead by $11k.
- Renting. Anaheim, CA. Ahead by $115k.
- Buying. Stockton, CA. Ahead by $16k.
- Rent. Riverside, CA. Ahead by $27k for renting.