Rent vs buy in Franklin, TN
In Franklin, Tennessee, a typical rent is $2,038 /mo, while the typical home value is $913,277.
Across 7 years, renting holds a $204k advantage.
Franklin's typical rent and home value form the basis, using 20% down and today's mortgage rate. There is no break-even within 30 years.
This is a clearly labelled opinion, with the math shown. Estimates, not quotes. The stamp changes when you change a number.
- Renting leads by
- $204k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Actual cost of owning
- $7,480 /mo year 1, against $2,038 rent
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In Franklin, is renting or buying less expensive?
After counting the money returned when you sell, renting costs $204,366 less over 7 years. In every year shown, renting's net cost is lower than owning's. Buying never catches up within 30 years.
Renting option. Homeownership. Net cost so far for each year.
Average rent compared with mortgage payment in Franklin
Rent and mortgage payments don't cover every cost, so here are all monthly expenses for year 1 at Franklin's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,038 | All of it, every month |
| Mortgage payment | $4,979 | $4,389 of it is interest in year 1 |
| Property tax | $327 | 0.43% of the value a year |
| Insurance | $138 | Census median for the city |
| Upkeep | $761 | 1% of the value a year |
| Owning, cash out | $6,205 | $590 of it builds equity |
| Lost return on the down payment | $1,484 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $381 | 3.5% of the price over 7 years |
| True cost of owning | $7,480 | Cash out minus equity, then add the two lines above |
The figures behind Franklin's result
- Typical home valueZillow ZHVI, September 2026
- $913,277
- Typical rentZillow ZORI, September 2026
- $2,038 /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, Tennessee, 1995 to 2025
- 4.7% 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, Franklin
- 0.43% of value
- Home insuranceCensus ACS 2020-2024, Franklin
- $138 /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 result in Franklin?
Each line shows the threshold that changes Franklin's 7-year result while all other figures stay the same.
Renting wins under these conditions
- Our calculation uses 4.7%, which is Tennessee's long-run rate, for home-price growth below 7.2% annually.
- The mortgage rate stays above 3.20% in this case.
- Monthly rent for a home like this is under $4,230 (typical here: $2,038).
- Moving at any point during the next 30 years won't let owning catch up at these numbers.
Conditions that favor buying
- Home prices rise by more than 7.2% a year.
- Today's mortgage rate is 7.24%, while you lock a rate below 3.20%.
- The monthly rent for that same home would be more than $4,230 if you rented.
How Franklin compares with the other 812 cities
| Measure | Franklin | Median city |
|---|---|---|
| Typical home value | $913,277 | $422,451 |
| Typical rent | $2,038 /mo | $1,837 /mo |
| Price-to-rent ratio | 37.3 (#17 of 813) | 18.5 |
| Home prices, last 10 years | 7.7% a year | 6.2% a year |
| Rents, last 5 years | 1.8% a year | 4% a year |
| Property tax | 0.43% | 0.87% |
| Households that rent | 36% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities in Tennessee besides Franklin
- Rent. For Nashville, TN, renting wins by $24k.
- Buy. For Memphis, TN, buying wins by $36k.
- Rent. For Knoxville, TN, renting wins by $10k.
- Rent. For Chattanooga, TN, renting wins by $11k.
- Rent. For Clarksville, TN, renting wins by $19k.
- Rent. For Murfreesboro, TN, renting wins by $36k.
- For Johnson City, TN, buying leads by $4k.
- Buy in Jackson, TN; buying wins by $25k.
- Rent. For Hendersonville, TN, renting wins by $77k.
- Rent. For Smyrna, TN, renting wins by $19k.
- Rent. For Spring Hill, TN, renting wins by $45k.
- The result is a toss-up. Buying leads by $3k in Kingsport, TN.