Rent vs buy in Elgin, IL
In Elgin, Illinois, a typical rent runs $1,923 /mo and a typical home costs $340,323.
Renting saves $58k over 7 years
Based on Elgin's typical rent and home value, 20% down, and today's mortgage rate No break-even point within 30 years.
A clearly labeled opinion with the math shown. These are estimates, not quotes. If you change a number, the stamp changes with it.
- Renting is ahead by
- $58k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Actual cost of owning
- $3,357 /mo year 1, against $1,923 rent
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Is it cheaper to rent or buy in Elgin?
Over 7 years, renting costs $57,993 less, including the money returned when you sell. In every year shown, renting's net cost runs below owning's, and owning never catches up within 30 years.
Renting side. Owning side. Net cost so far, year by year.
Average rent compared with the mortgage payment in Elgin
Rent and mortgage payments aren't the whole story. Here are all the monthly costs in year 1, based on Elgin's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,923 | All of it, every month |
| Mortgage payment | $1,855 | $1,635 of it is interest in year 1 |
| Property tax | $644 | 2.27% of the value a year |
| Insurance | $99 | Census median for the city |
| Upkeep | $284 | 1% of the value a year |
| Owning, cash out | $2,882 | $220 of it builds equity |
| Lost return on the down payment | $553 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $142 | 3.5% of the price over 7 years |
| True cost of owning | $3,357 | Cash paid, minus the equity portion and plus the two amounts above |
Elgin's verdict explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $340,323
- Typical rentZillow ZORI, September 2026
- $1,923 /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, Illinois, 1995 to 2025
- 3.3% 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, Elgin
- 2.27% of value
- Home insuranceCensus ACS 2020-2024, Elgin
- $99 /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 reverse the Elgin result?
Each line marks the point where Elgin's 7-year verdict changes, with everything else held as it is.
Renting wins if
- Our calculation uses 3.3%, Illinois's long-run rate for home prices that grow slower than 5.5% a year.
- The mortgage rate remains above 4.19%.
- Monthly rent for a home like this is less than $2,540. The typical amount here is $1,923.
- Move at any point during the next 30 years, and owning never catches up with these figures.
Buying wins if
- Home prices rise by more than 5.5% a year.
- You secure a mortgage rate under 4.19% (today's is 7.24%).
- If you rented the same home, you'd pay more than $2,540 monthly.
A city comparison: Elgin and 812 others
| Measure | Elgin | Median city |
|---|---|---|
| Typical home value | $340,323 | $422,451 |
| Typical rent | $1,923 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.7 (#637 of 813) | 18.5 |
| Home prices, last 10 years | 6.4% a year | 6.2% a year |
| Rents, last 5 years | 6.7% a year | 4% a year |
| Property tax | 2.27% | 0.87% |
| Households that rent | 28% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Illinois cities
- Too close to call in Chicago, IL. Buying leads by $3k.
- In Aurora, IL, renting leads by $12k.
- In Naperville, IL, renting leads by $198k.
- In Joliet, IL, renting leads by $30k.
- In Rockford, IL, renting leads by $22k.
- In Springfield, IL, renting leads by $13k.
- In Peoria, IL, buying leads by $15k.
- In Champaign, IL, renting leads by $29k.
- In Waukegan, IL, renting leads by $24k.
- In Cicero, IL, renting leads by $71k.
- In Bloomington, IL, renting leads by $68k.
- In Schaumburg, IL, renting leads by $42k.