Rent vs buy in Duluth, MN

Duluth, Minnesota shows a typical rent of $1,434 a month and a typical home price of $296,120.

Rent

Renters come out ahead by $28k across the 7-year period.

Today's mortgage rate and a 20% down payment apply, using Duluth's typical rent along with its home value. The break-even point is year 15.

Clearly labelled opinion, with the math shown. These figures are estimates rather than quotes. If you change a number, the stamp will change.

How far renting leads: $28k
When costs break even: year 15
Full cost of owning: $2,683 a month

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The stamp draws on Duluth's typical rent and the typical home value there. You can reverse the result with your rent, price and years.

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Which costs less in Duluth, renting or buying?

If you include the money returned when you sell, renting costs $27,659 less over 7 years. For the first 14 years, renting costs less. By year 15, owning catches up.

Rent. Own. By year, the net cost so far.

Duluth's average rent compared with the mortgage payment

At Duluth's typical price, here are all monthly costs in year 1, including more than just rent and the mortgage.

Each month, year 1	Amount	What it is
Rent	$1,434	All of it, every month
Mortgage payment	$1,614	$1,423 of it is interest in year 1
Property tax	$294	1.19% of the value a year
Insurance	$115	Census median for the city
Upkeep	$247	1% of the value a year
Owning, cash out	$2,270	$191 of it builds equity
Lost return on the down payment	$481	That cash would earn 8.3% each year
Buying costs, spread out	$123	3.5% of the price over 7 years
True cost of owning	$2,683	Cash spent, minus the equity portion, plus both lines above

The Duluth verdict in numbers

Typical home valueZillow ZHVI, September 2026: $296,120
Typical rentZillow ZORI, September 2026: $1,434 /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, Minnesota, 1995 to 2025: 4.3% 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, Duluth: 1.19% of value
Home insuranceCensus ACS 2020-2024, Duluth: $115 /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

Which changes could reverse the Duluth result?

For each line, the verdict for Duluth over 7 years changes at that point, while everything else stays the same.

Renting comes out ahead when

Home price growth falls short of 5.4% a year (4.3%, Minnesota's long-run rate, is what we use).
The mortgage rate remains above 5.58%.
For a home like this, rent is under $1,730 a month (the typical figure here is $1,434).
Before year 15, you move.

Buying comes out ahead when

Home prices climb at more than 5.4% a year.
You lock in a mortgage rate under 5.58% (today's is 7.24%).
You'd pay more than $1,730 a month to rent that same home.
Your stay lasts 15 years or longer.

Duluth compared with the other 812 cities

Measure	Duluth	Median city
Typical home value	$296,120	$422,451
Typical rent	$1,434 /mo	$1,837 /mo
Price-to-rent ratio	17.2 (#481 of 813)	18.5
Home prices, last 10 years	6.1% a year	6.2% a year
Rents, last 5 years	4.6% a year	4% a year
Property tax	1.19%	0.87%
Households that rent	41%	42%

Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.

More cities in Minnesota

Rent wins in Woodbury, MN, by $37k.

Minnesota's rent vs buy numbers