Rent vs buy in Jackson, TN
In Jackson, Tennessee, the typical monthly rent is $1,418, and the typical home costs $220,277.
Buying comes out ahead by $25k over 7 years
Using Jackson's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point arrives in year 4.
Clearly labeled opinion, with math shown. These figures are estimates, not quotes. If you change a number, the stamp will change with it.
- Owning leads by
- $25k after 7 years
- Break-even point
- year 4 when owning catches up
- Full cost of owning
- $1,940 /mo year 1, against $1,418 rent
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Which costs less in Jackson, renting or buying?
If you count the money you get back when you sell, buying costs $25,112 less over 7 years. In year 4, owning's net cost falls below renting's and remains lower.
Renting. Owning. Net cost by year so far.
Average rent compared with mortgage payment in Jackson
Rent and mortgage payments don't tell the whole story. Here's every monthly expense for year 1 at Jackson's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,418 | All of it, every month |
| Mortgage payment | $1,201 | $1,059 of it is interest in year 1 |
| Property tax | $128 | 0.7% of the value a year |
| Insurance | $120 | Census median for the city |
| Upkeep | $184 | 1% of the value a year |
| Owning, cash out | $1,633 | $142 of it builds equity |
| Lost return on the down payment | $358 | The yearly earnings from cash at 8.3% |
| Buying costs, spread out | $92 | 3.5% of the price over 7 years |
| True cost of owning | $1,940 | Cash out, minus the equity part, plus both lines above |
The figures behind Jackson's result
- Home value for a typical home: Zillow ZHVI, September 2026
- $220,277
- Typical rent: Zillow ZORI, September 2026
- $1,418 each month
- With a 20% down payment, you avoid private mortgage insurance. The engine doesn't include it.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index, Tennessee, 1995 to 2025
- Each year, the rate is 4.7%.
- Rent growth: CPI for rent of a primary residence, annual growth, 2006 to 2026
- 3.5% each year
- Return on savings: A yearly rebalanced mix of 60% S&P 500 with dividends plus 40% 10-year Treasuries, 1928 to 2025
- 8.3% each year
- Property tax: Census ACS 2020-2024, Jackson
- 0.7% of the value
- Home insurance: Census ACS 2020-2024, Jackson
- $120 each month
- Maintenance: Fannie Mae, low end of the 1% to 4% range
- Each year, the cost equals 1% of value.
- Buying costs: Freddie Mac, middle of the 2% to 5% range
- The amount equals 3.5% of price.
- Sale costsAgent commission plus closing costs
- 6% of the price
Which factors could flip the Jackson result?
Each line marks where Jackson's 7-year verdict changes, with all other factors left as they are.
Renting comes out ahead when
- Home prices grow by less than 3.3% a year; the model uses 4.7%, Tennessee's long-run rate.
- Your mortgage rate stays higher than 9.25%.
- A similar home rents for under $1,150 each month, though the typical rent here is $1,418.
- Moving before year 4 changes the result.
Home buying comes out ahead when
- Home prices grow at more than 3.3% a year.
- You lock in a rate below 9.25%, while today's rate is 7.24%.
- For the same home, your rent would exceed $1,150 each month.
- You remain there for 4 years or more.
Jackson compared with 812 other cities
| Measure | Jackson | Median city |
|---|---|---|
| Typical home value | $220,277 | $422,451 |
| Typical rent | $1,418 /mo | $1,837 /mo |
| Price-to-rent ratio | 12.9 (#729 of 813) | 18.5 |
| Home prices, last 10 years | 6.4% a year | 6.2% a year |
| Property tax | 0.70% | 0.87% |
| Households that rent | 49% | 42% |
Data from Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across Tennessee
- Renting wins by $24k in Nashville, TN.
- Buying wins by $36k in Memphis, TN.
- Renting wins by $10k in Knoxville, TN.
- Renting wins by $11k in Chattanooga, TN.
- Renting wins by $19k in Clarksville, TN.
- Renting wins by $36k in Murfreesboro, TN.
- Renting wins by $204k in Franklin, TN.
- Buying wins by $4k in Johnson City, TN.
- Renting wins by $77k in Hendersonville, TN.
- Rent. Smyrna, TN. Renting comes out ahead by $19k.
- Rent. Spring Hill, TN. Renting comes out ahead by $45k.
- Toss-up. Kingsport, TN. Buying leads by $3k, so the result is close.