Rent vs buy in Farmington Hills, MI
In Farmington Hills, Michigan, the typical rent is $1,478 /mo and the typical home value is $386,980.
Over 7 years, renting comes out ahead by $95k
The basis is Farmington Hills's typical rent figure, its home value, 20% down and today's mortgage rate. No break-even occurs within 30 years.
Opinion with the math shown and a clear label. Estimates, not quotes. Adjust any number and the stamp updates.
- How far renting leads
- $95k after 7 years
- When costs balance
- 30+ years owning never catches up sooner
- Full cost to own
- Monthly cost: $3,569 year 1, against $1,478 rent
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Is renting or buying cheaper in Farmington Hills?
Across 7 years, renting costs $94,558 less, including the money you receive when you sell. In every year shown, renting's net cost is lower than owning's, and owning never catches up within 30 years.
Renting option The owning choice Net cost to date for each year.
Average rent compared with mortgage payment in Farmington Hills
Rent and the mortgage don't explain all the costs. Year 1 figures at Farmington Hills's typical price cover every monthly expense.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,478 | All of it, every month |
| Mortgage payment | $2,110 | $1,860 of it is interest in year 1 |
| Property tax | $490 | 1.52% of the value a year |
| Insurance | $106 | Census median for the city |
| Upkeep | $322 | 1% of the value a year |
| Owning, cash out | $3,028 | $250 of it builds equity |
| Lost return on the down payment | $629 | At 8.3% a year, this is the return the cash would earn. |
| Buying costs, spread out | $161 | 3.5% of the price over 7 years |
| True cost of owning | $3,569 | Cash paid out, minus the equity portion, plus the two amounts listed above |
Numbers behind Farmington Hills's verdict
- Typical home valueZillow ZHVI, September 2026
- $386,980
- Typical rentZillow ZORI, September 2026
- $1,478 /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, Farmington Hills
- 1.52% of value
- Home insuranceCensus ACS 2020-2024, Farmington Hills
- $106 /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 flip the Farmington Hills verdict?
Each line shows where Farmington Hills's 7-year verdict changes while all other figures remain unchanged.
Conditions for renting to win
- For the calculation, home prices rise by less than 6.7% each year; the rate used is 3.8%, Michigan's long-run rate.
- That mortgage rate remains above 2.82%.
- A similar home rents for under $2,490 a month (the local typical rent is $1,478).
- You move at any time during the next 30 years, and owning never catches up with these figures.
Conditions for buying to win
- Home prices rise at more than 6.7% a year.
- You secure a mortgage rate under 2.82% (today's is 7.24%).
- The same home would cost more than $2,490 a month to rent.
How Farmington Hills compares with 812 other cities
| Measure | Farmington Hills | Median city |
|---|---|---|
| Typical home value | $386,980 | $422,451 |
| Typical rent | $1,478 /mo | $1,837 /mo |
| Price-to-rent ratio | 21.8 (#255 of 813) | 18.5 |
| Home prices, last 10 years | 5.5% a year | 6.2% a year |
| Rents, last 5 years | 3.7% a year | 4% a year |
| Property tax | 1.52% | 0.87% |
| Households that rent | 35% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities elsewhere in Michigan
- Buy. Detroit, MI. Buying is ahead by $72k.
- Rent. Grand Rapids, MI. Renting is ahead by $20k.
- Buy. Warren, MI. Buying is ahead by $7k.
- Rent. Sterling Heights, MI. Renting is ahead by $32k.
- Rent. Ann Arbor, MI. Renting is ahead by $124k.
- Toss-up. Lansing, MI. It's close, but buying is ahead by $2k.
- Buy. Dearborn, MI. Buying is ahead by $18k.
- Rent. Livonia, MI. Renting is ahead by $26k.
- Rent. Troy, MI. Renting is ahead by $89k.
- Rent. Westland, MI. Renting is ahead by $7k.
- Buy. Flint, MI. Buying is ahead by $39k.
- Rent. Wyoming, MI. The advantage goes to renting, worth $23k.