Rent vs buy in Folsom, CA
In Folsom, California, the typical rent is $2,667 /mo and the typical home costs $754,898.
Over 7 years, renting comes out ahead by $63k
This calculation applies Folsom's typical rent and home value, 20% down and today's mortgage rate. You break even in year 13.
An opinion, clearly labelled, and the math is shown. What you see are estimates, not quotes. Adjust a number and the stamp updates.
- Renting's lead
- $63k after 7 years
- The break-even point
- year 13 when owning catches up
- What owning really costs
- $6,428 a month year 1, against $2,667 rent
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Is renting or buying cheaper in Folsom?
Count the money that comes back to you when you sell, and renting is $63,061 cheaper over 7 years. For the first 12 years, renting costs less. In year 13, owning catches up.
Renting option The owning side Net cost to date, by year
Average rent versus a mortgage payment in Folsom
Rent and the mortgage are only part of the story, so here are all monthly costs at Folsom's typical price for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,667 | All of it, every month |
| Mortgage payment | $4,116 | $3,628 of it is interest in year 1 |
| Property tax | $516 | 0.82% of the value a year |
| Insurance | $114 | Census median for the city |
| Upkeep | $629 | 1% of the value a year |
| Owning, cash out | $5,375 | $488 of it builds equity |
| Lost return on the down payment | $1,227 | At 8.3% a year, that's what the cash would earn. |
| Buying costs, spread out | $315 | 3.5% of the price over 7 years |
| True cost of owning | $6,428 | Cash out, minus the equity portion, plus both lines listed above |
The Folsom verdict's numbers
- Typical home valueZillow ZHVI, September 2026
- $754,898
- Typical rentZillow ZORI, September 2026
- $2,667 /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, California, 1995 to 2025
- 5.3% 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, Folsom
- 0.82% of value
- Home insuranceCensus ACS 2020-2024, Folsom
- $114 /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 change would reverse the Folsom result?
Every line marks the point at which the 7-year verdict for Folsom changes, with everything else left alone.
Renting comes out ahead when
- Home prices grow more slowly than 6.3% a year (we use California's long-run rate of 5.3%).
- The mortgage rate remains above 5.75%.
- A home like this has a monthly rent below $3,340 (typical here: $2,667).
- Before year 13, you move.
Buying comes out ahead when
- Home prices increase at a yearly rate above 6.3%.
- You get a mortgage rate under 5.75% locked in (today's is 7.24%).
- You'd pay more than $3,340 a month to rent that same home.
- Your stay lasts 13 years or more.
Folsom compared with the other 812 cities
| Measure | Folsom | Median city |
|---|---|---|
| Typical home value | $754,898 | $422,451 |
| Typical rent | $2,667 /mo | $1,837 /mo |
| Price-to-rent ratio | 23.6 (#186 of 813) | 18.5 |
| Home prices, last 10 years | 4.4% a year | 6.2% a year |
| Rents, last 5 years | 2.1% a year | 4% a year |
| Property tax | 0.82% | 0.87% |
| Households that rent | 30% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across California
- Rent. Los Angeles, CA. Renting is ahead by $111k.
- Rent. San Diego, CA. renting comes out ahead by $108k.
- Rent. San Jose, CA. renting comes out ahead by $210k.
- Rent. San Francisco, CA. renting comes out ahead by $128k.
- Buy. Fresno, CA. buying comes out ahead by $22k.
- Toss-up. Sacramento, CA. Renting leads by $3k.
- Rent. Long Beach, CA. Renting has the advantage by $111k.
- Rent. Oakland, CA. renting comes out ahead by $44k.
- Buy. Bakersfield, CA. buying comes out ahead by $11k.
- Rent. Anaheim, CA. renting comes out ahead by $115k.
- Buy. Stockton, CA. buying comes out ahead by $16k.
- Renting. Riverside, CA. Renting comes out ahead by $27k.