Rent vs buy in Laredo, TX
In Laredo, Texas, the typical rent is $1,129 /mo and the typical home is $219,517.
Renting comes out ahead by $20k over 7 years
Today's mortgage rate and a 20% down payment, set against Laredo's typical rent and the typical home value there. The break-even point is year 14.
A clearly labeled opinion with the math shown. These are estimates, not quotes. Adjust any figure and the stamp updates.
- Rent leads by
- $20k after 7 years
- When costs match
- Year: 14 when owning catches up
- What owning really costs
- $2,123 monthly year 1, against $1,129 rent
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Is it cheaper to rent or buy in Laredo?
Over 7 years renting costs $20,024 less, counting the money you get back when you sell. For the first 13 years, renting is cheaper. In year 14, owning catches up.
Renting Owning Net cost by year so far
Comparing average rent and the mortgage payment in Laredo
Rent and the mortgage payment don't tell the whole story, so here are all the monthly costs in year 1, priced at Laredo's typical value.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,129 | All of it, every month |
| Mortgage payment | $1,197 | $1,055 of it is interest in year 1 |
| Property tax | $333 | 1.82% of the value a year |
| Insurance | $104 | Census median for the city |
| Upkeep | $183 | 1% of the value a year |
| Owning, cash out | $1,817 | $142 of it builds equity |
| Lost return on the down payment | $357 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $91 | 3.5% of the price over 7 years |
| True cost of owning | $2,123 | Cash out, minus the equity part, plus both lines above |
The Laredo verdict, in numbers
- Home value, typicalZillow ZHVI, September 2026
- $219,517
- Monthly rent, typicalZillow ZORI, September 2026
- $1,129 monthly
- Down payment of 20% avoids private mortgage insurance, which the engine doesn't model
- 20%
- Rate used for mortgagesFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home prices: House price index from FHFA, Texas, 1995 to 2025
- 4.7% yearly
- Rent growthCPI for primary residence rent, yearly growth 2006 to 2026
- 3.5% yearly
- Property taxes Census ACS 2020-2024, Laredo
- 1.82% of the value
- Insurance on the home Census ACS 2020-2024, Laredo
- $104 monthly
- MaintenanceFannie Mae, 1% to 4% at the low end
- Each year, 1% of value
- Costs of buying Freddie Mac, middle of 2% to 5%
- 3.5% applies to the price
- Costs for sellingAgent commission and closing costs
- 6% applies to the price
What would flip the Laredo verdict?
Every line shows where the 7-year Laredo verdict changes, with all else left unchanged.
Renting comes out ahead when
- Home prices grow less than 5.8% a year (4.7% is the long-run rate we use for Texas's market).
- Rates on mortgages remain above 5.62%.
- A similar home rents below $1,340 monthly (the typical figure here is $1,129).
- Your move happens before year 14.
When buying comes out ahead
- Home prices grow each year faster than 5.8%.
- Today's mortgage rate is 7.24%. The rate you lock in sits below 5.62%.
- The monthly rent for that same home would exceed $1,340.
- Your stay lasts 14 years or more.
Laredo compared with the other 812 cities
| Measure | Laredo | Median city |
|---|---|---|
| Typical home value | $219,517 | $422,451 |
| Typical rent | $1,129 /mo | $1,837 /mo |
| Price-to-rent ratio | 16.2 (#538 of 813) | 18.5 |
| Home prices, last 10 years | 3.6% a year | 6.2% a year |
| Rents, last 5 years | 3.9% a year | 4% a year |
| Property tax | 1.82% | 0.87% |
| Households that rent | 36% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
A look at other Texas cities
- It's a toss-up. Houston, TX. Renting holds a $2k lead.
- Renters come out ahead in San Antonio, TX, by $10k.
- Renters come out ahead in Dallas, TX, by $20k.
- Renters come out ahead in Fort Worth, TX, by $17k.
- Renters come out ahead in Austin, TX, by $111k.
- The result is close. El Paso, TX. Buying leads by $2k.
- Renters come out ahead in Arlington, TX, by $34k.
- Buyers come out ahead in Corpus Christi, TX, by $4k.
- Renters come out ahead in Plano, TX, by $105k.
- The result is close. Lubbock, TX. Buying leads by $2k.
- Renters come out ahead in Irving, TX, by $36k.
- Renters come out ahead in Garland, TX, by $12k.