Rent vs buy in Gaithersburg, MD
In Gaithersburg, Maryland, the typical monthly rent is $2,196 and a typical home is $513,386.
Renting comes out ahead by $65k over 7 years
The calculation applies a 20% down payment and today's mortgage rate to Gaithersburg's typical rent and home value. The break-even point is year 21.
A clearly labelled opinion with the math shown. Estimates, not quotes. If you change a number, the stamp changes with it.
- Renting leads by
- $65k after 7 years
- Break-even point
- year 21 when owning catches up
- Actual cost of owning
- $4,442 /mo year 1, against $2,196 rent
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Is renting or buying cheaper in Gaithersburg?
Over 7 years, renting costs $64,504 less when you include the money returned to you after the sale. For the first 20 years, renting costs less. In year 21, owning catches up.
Renting. Owning. Net costs so far, arranged by year.
Mortgage payments compared with average rent in Gaithersburg
At Gaithersburg's typical price, this breakdown lists every monthly cost for year 1, including rent and mortgage payments.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,196 | All of it, every month |
| Mortgage payment | $2,799 | $2,467 of it is interest in year 1 |
| Property tax | $415 | 0.97% of the value a year |
| Insurance | $84 | Census median for the city |
| Upkeep | $428 | 1% of the value a year |
| Owning, cash out | $3,726 | $332 of it builds equity |
| Lost return on the down payment | $834 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $214 | 3.5% of the price over 7 years |
| True cost of owning | $4,442 | Cash out minus the equity portion, plus the two amounts listed above |
The figures behind the Gaithersburg result
- Typical home valueZillow ZHVI, September 2026
- $513,386
- Typical rentZillow ZORI, September 2026
- $2,196 /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, Maryland, 1995 to 2025
- 4.1% 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, Gaithersburg
- 0.97% of value
- Home insuranceCensus ACS 2020-2024, Gaithersburg
- $84 /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 Gaithersburg result?
Each line shows where the 7-year result for Gaithersburg changes, while all other factors remain the same.
Renting wins if
- Slower home price growth than 5.6% a year is the condition. We use 4.1%, Maryland's rate over the long run.
- The mortgage rate stays higher than 5.00%.
- A home like this has a monthly rent below $2,890 (the typical rent here is $2,196).
- Before year 21, you move.
Buying comes out ahead when
- Home prices rise by more than 5.6% a year.
- You lock in a mortgage rate under 5.00% (today's rate is 7.24%).
- You'd pay more than $2,890 each month to rent that same property.
- You stay for 21 years or more.
How Gaithersburg compares with the other 812 cities
| Measure | Gaithersburg | Median city |
|---|---|---|
| Typical home value | $513,386 | $422,451 |
| Typical rent | $2,196 /mo | $1,837 /mo |
| Price-to-rent ratio | 19.5 (#360 of 813) | 18.5 |
| Home prices, last 10 years | 3.4% a year | 6.2% a year |
| Rents, last 5 years | 3.1% a year | 4% a year |
| Property tax | 0.97% | 0.87% |
| Households that rent | 49% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Maryland
- Buy. Baltimore, MD. Here, buying wins by $54k.
- Rent. Frederick, MD. Here, renting wins by $50k.
- Rent. Renting comes out ahead by $91k in Rockville, MD.
- Rent. Renting comes out ahead by $50k in Bowie, MD.