Rent vs buy in Kokomo, IN
In Kokomo, Indiana, typical rent is $1,099 /mo, while typical home price is $181,709.
Over 7 years, the gap is $94, making it a toss-up.
Using Kokomo's typical rent and home value, the calculation applies 20% down and today's mortgage rate. You reach break-even in year 7.
A clearly labeled opinion with the math shown. These are estimates, not quotes. If you change a number, the stamp changes with it.
- Gap
- $94 after 7 years
- Break-even point
- year 7 when owning catches up
- Full cost of ownership
- $1,593 /mo year 1, against $1,099 rent
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Is renting or buying cheaper in Kokomo?
The two paths end within $94 of each other over 7 years, making small changes the deciding factor. In year 7, owning's net cost falls below renting's and remains lower.
Rent. Own. Net cost accumulated by year.
How Kokomo's average rent compares with its mortgage payment
Rent and mortgage don't tell the whole story. Here are all monthly costs for year 1 at Kokomo's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,099 | All of it, every month |
| Mortgage payment | $991 | $873 of it is interest in year 1 |
| Property tax | $118 | 0.78% of the value a year |
| Insurance | $79 | Census median for the city |
| Upkeep | $151 | 1% of the value a year |
| Owning, cash out | $1,339 | $117 of it builds equity |
| Lost return on the down payment | $295 | The yearly amount the cash would earn at 8.3%. |
| Buying costs, spread out | $76 | 3.5% of the price over 7 years |
| True cost of owning | $1,593 | Cash out minus the equity part, plus the two amounts above |
The figures behind the Kokomo verdict
- Typical home valueZillow ZHVI, September 2026
- $181,709
- Typical rentZillow ZORI, September 2026
- $1,099 /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, Indiana, 1995 to 2025
- 3.7% 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, Kokomo
- 0.78% of value
- Home insuranceCensus ACS 2020-2024, Kokomo
- $79 /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 Kokomo?
Every line marks a change in Kokomo's 7-year verdict while all other factors remain the same.
Renting comes out ahead under these conditions
- Prices for homes grow more slowly than 3.7% per year. Our 3.7% figure comes from the long-run rate in Indiana's market.
- Rates for mortgages stay above 7.25%.
- For a home like this, rent is less than $1,100 each month (typical here: $1,099).
- Moving before year 7.
When buying is the winner
- Home prices grow by more than 3.7% a year.
- You lock in a mortgage rate under 7.25% (today's is 7.24%).
- If you rented the same home, you'd pay more than $1,100 a month.
- Staying 7 years or longer.
How Kokomo compares with the other 812 cities
| Measure | Kokomo | Median city |
|---|---|---|
| Typical home value | $181,709 | $422,451 |
| Typical rent | $1,099 /mo | $1,837 /mo |
| Price-to-rent ratio | 13.8 (#688 of 813) | 18.5 |
| Home prices, last 10 years | 7.8% a year | 6.2% a year |
| Rents, last 5 years | 8% a year | 4% a year |
| Property tax | 0.78% | 0.87% |
| Households that rent | 37% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities elsewhere in Indiana
- Toss-up. In Indianapolis, IN, renting leads by $2k.
- Rent. In Fort Wayne, IN, renting leads by $20k.
- Rent. In Evansville, IN, renting leads by $17k.
- Rent. In Fishers, IN, renting leads by $70k.
- Buy. In South Bend, IN, buying leads by $4k.
- Rent. In Carmel, IN, renting leads by $143k.
- Rent. In Bloomington, IN, renting leads by $9k.
- Buy. In Hammond, IN, buying leads by $37k.
- Rent. In Noblesville, IN, renting leads by $62k.
- Rent. In Lafayette, IN, renting leads by $24k.
- Rent. In Greenwood, IN, renting leads by $33k.
- Buy. In Gary, IN, buying leads by $72k.