Rent vs buy in Lebanon, TN
In Lebanon, Tennessee, the typical monthly rent is $1,613 and the typical home value is $441,712.
Renting comes out $46k ahead over 7 years
Today's mortgage rate and 20% down, with Lebanon's typical home value and rent. It reaches break-even in year 15.
Clearly labeled opinion, with the math shown. These figures are estimates, not quotes. If you change a number, the stamp changes.
- How far renting is ahead
- $46k after 7 years
- When costs balance
- in year 15 when owning catches up
- Actual ownership cost
- $3,678 a month year 1, against $1,613 rent
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From Lebanon's typical home value and rent, the stamp gets its numbers. You can change the result with your rent, price and years.
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Is renting or buying cheaper in Lebanon?
If you include the money you get back when you sell, renting costs $45,654 less over 7 years. For the first 14 years, renting costs less. In year 15, owning catches up.
Renting option For owning Net cost by year so far
Lebanon: average rent vs mortgage payment
Rent and mortgage payments alone don't tell the whole story. At Lebanon's typical price, here are all the monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,613 | All of it, every month |
| Mortgage payment | $2,408 | $2,123 of it is interest in year 1 |
| Property tax | $184 | 0.5% of the value a year |
| Insurance | $101 | Census median for the city |
| Upkeep | $368 | 1% of the value a year |
| Owning, cash out | $3,061 | $286 of it builds equity |
| Lost return on the down payment | $718 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $184 | 3.5% of the price over 7 years |
| True cost of owning | $3,678 | Cash paid out, minus equity, plus the two lines above |
Lebanon verdict numbers
- Typical home value: Zillow data ZHVI, September 2026
- $441,712
- Typical rent: Zillow data ZORI, September 2026
- $1,613 monthly
- Down payment: 20% avoids private mortgage insurance. The engine doesn't model it.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home prices: FHFA's house price index for Tennessee, 1995 to 2025
- 4.7% each year
- Rent growth: CPI rent of primary residence, growth each year 2006 to 2026
- Each year, 3.5%
- Return on savings: 60% S&P 500, including dividends, alongside 40% 10-year Treasuries, rebalanced yearly from 1928 through 2025
- Each year, 8.3%
- Property tax: Census ACS 2020-2024, Lebanon
- Value multiplied by 0.5%
- Home insurance: Census ACS 2020-2024, Lebanon
- $101 each month
- Upkeep: Fannie Mae, low end of 1% to 4%
- Value times 1% yearly
- Costs to buy: Freddie Mac, middle of 2% to 5%
- Price times 3.5%
- Costs to sell: Agent commission plus closing costs
- Price times 6%
What would flip the result in Lebanon?
The result changes at each threshold for Lebanon's 7-year verdict, while all other factors remain the same.
When renting is the better choice
- With home price growth below 5.9% annually, our calculation uses 4.7%, Tennessee's long-run rate.
- The mortgage rate remains higher than 5.40%.
- Monthly rent for a similar home is under $2,100, with $1,613 typical here.
- Before year 15, you move.
When buying is the better choice
- Home prices grow by more than 5.9% a year.
- You lock in a rate below 5.40% for the mortgage (today's is 7.24%).
- The same home's rent would cost more than $2,100 monthly.
- Staying for 15 years or longer.
How Lebanon compares with the other 812 cities
| Measure | Lebanon | Median city |
|---|---|---|
| Typical home value | $441,712 | $422,451 |
| Typical rent | $1,613 /mo | $1,837 /mo |
| Price-to-rent ratio | 22.8 (#212 of 813) | 18.5 |
| Home prices, last 10 years | 6.7% a year | 6.2% a year |
| Property tax | 0.50% | 0.87% |
| Households that rent | 38% | 42% |
Sources: Zillow's ZHVI and ZORI, Census ACS 2020-2024.
More cities in Tennessee
- Rent. In Nashville, TN, renting wins by $24k.
- Buy. In Memphis, TN, buying wins by $36k.
- Rent. In Knoxville, TN, renting wins by $10k.
- Rent. In Chattanooga, TN, renting wins by $11k.
- Rent. In Clarksville, TN, renting wins by $19k.
- Rent. In Murfreesboro, TN, renting wins by $36k.
- Rent. In Franklin, TN, renting wins by $204k.
- Buy. Buying wins by $4k in Johnson City, TN.
- In Jackson, TN, buying holds a $25k advantage.
- In Hendersonville, TN, renting holds a $77k advantage.
- In Smyrna, TN, renting holds a $19k advantage.
- In Spring Hill, TN, renting holds a $45k advantage.