Rent vs buy in Lafayette, IN
In Lafayette, Indiana, the typical rent is $1,282 /mo and the typical home is $264,702.
Over 7 years, renting comes out ahead by $24k
Today's mortgage rate and 20% down, with Lafayette's typical rent and typical home value. The break-even point is year 15.
Clearly labelled opinion, with the math shown. These are estimates, not quotes. Adjust any number and the stamp updates.
- Renting leads by
- $24k after 7 years
- Break even point
- the 15th year when owning catches up
- Real cost of owning
- $2,255 per month year 1, against $1,282 rent
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Lafayette's typical rent and home value are what the stamp uses. It can flip, depending on your rent, your price or your years.
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Is renting or buying cheaper in Lafayette?
Over 7 years, renting costs less by $23,830, counting the money that comes back to you when you sell. For the first 14 years, renting stays cheaper. In year 15, owning catches up.
Rent. Ownership. Net cost to date, by year.
Average rent compared with mortgage payment in Lafayette
Rent and mortgage payments tell only part of the story, so here are all the monthly costs at Lafayette's typical price, for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,282 | All of it, every month |
| Mortgage payment | $1,443 | $1,272 of it is interest in year 1 |
| Property tax | $143 | 0.65% of the value a year |
| Insurance | $78 | Census median for the city |
| Upkeep | $221 | 1% of the value a year |
| Owning, cash out | $1,885 | $171 of it builds equity |
| Lost return on the down payment | $430 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $110 | 3.5% of the price over 7 years |
| True cost of owning | $2,255 | Cash out, less what builds equity, plus the two lines above. |
Lafayette verdict: the numbers behind it
- Typical home value: Zillow ZHVI, September 2026
- $264,702
- Typical rent: Zillow ZORI, September 2026
- $1,282 per month
- Down payment: 20% means you avoid private mortgage insurance, which this model leaves out
- 20%
- Rate on the mortgageFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index for Indiana, 1995 to 2025
- 3.7% each year
- How rents have grownCPI rent of primary residence, growth per year from 2006 to 2026
- 3.5% yearly
- Savings return 40% 10-year Treasuries and 60% S&P 500 with dividends, rebalanced yearly, 1928 to 2025
- 8.3% yearly
- Tax on the property Census ACS 2020-2024, Lafayette
- 0.65% of the value
- Insurance on the home Census ACS 2020-2024, Lafayette
- $78 a month
- Upkeep Fannie Mae, low end of the 1% to 4% range
- 1% of the value a year
- Costs of buying Freddie Mac, middle of the 2% to 5% range
- 3.5% of the price
- Costs of selling Agent commission and closing costs
- 6% of the price
What would change the verdict in Lafayette?
Each line marks where Lafayette's 7-year verdict flips, with everything else held as it is.
Renting comes out ahead when
- Home prices rise by under 4.8% a year (the 3.7% we use is Indiana's long-run pace).
- Rates for mortgages remain above 5.64%.
- Renting a home like this costs less than $1,540 a month (typical rent here: $1,282).
- Your move comes before year 15.
Buying comes out ahead when
- Home prices rise by more than 4.8% a year.
- You fix a mortgage rate under 5.64% (the current rate is 7.24%).
- Rent on that same home would run you over $1,540 a month.
- You remain for 15 years or more.
Lafayette compared with the other 812 cities
| Measure | Lafayette | Median city |
|---|---|---|
| Typical home value | $264,702 | $422,451 |
| Typical rent | $1,282 /mo | $1,837 /mo |
| Price-to-rent ratio | 17.2 (#482 of 813) | 18.5 |
| Home prices, last 10 years | 7.5% a year | 6.2% a year |
| Rents, last 5 years | 6% a year | 4% a year |
| Property tax | 0.65% | 0.87% |
| Households that rent | 53% | 42% |
Sources used: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Indiana cities
- Toss-up. Indianapolis, IN. Renting is ahead by $2k in this toss-up.
- Renting leads in Bloomington, IN, by $9k.
- Renting leads in Noblesville, IN, by $62k.
- Rent. Greenwood, IN. Renting is ahead by $33k.