Rent vs buy in Little Elm, TX
In Little Elm, Texas, the typical home costs $390,812 and monthly rent is $2,268.
Renting is ahead by $7k across 7 years
Little Elm's typical rent and the typical home value, using 20% down and today's mortgage rate. The break-even point occurs in year 8.
This is an opinion, clearly marked with its calculations. The figures are estimates, not quotes. The stamp changes when you change a number.
- Ahead with renting
- $7k after 7 years
- Break-even point
- year 8 when owning catches up
- Full cost of owning
- $3,733 /mo year 1, against $2,268 rent
Change my numbers
Typical rent and home value figures from Little Elm's market feed into the stamp. Different numbers for rent, price and years can turn the outcome around.
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Which costs less in Little Elm, renting or buying?
After counting the money returned when you sell, renting costs $7,390 less over 7 years. For the first 7 years, renting costs less. By year 8, owning has caught up.
Renting Owning Net cost to date, by year
Comparing Little Elm's average rent with its mortgage payment
At Little Elm's typical price, here are all the monthly costs in year 1, rent and mortgage included.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,268 | All of it, every month |
| Mortgage payment | $2,131 | $1,878 of it is interest in year 1 |
| Property tax | $573 | 1.76% of the value a year |
| Insurance | $158 | Census median for the city |
| Upkeep | $326 | 1% of the value a year |
| Owning, cash out | $3,188 | $253 of it builds equity |
| Lost return on the down payment | $635 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $163 | 3.5% of the price over 7 years |
| True cost of owning | $3,733 | Cash paid, minus the equity portion, plus the two costs listed above |
The figures behind Little Elm's result
- Typical home valueZillow ZHVI, September 2026
- $390,812
- Typical rentZillow ZORI, September 2026
- $2,268 /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, Texas, 1995 to 2025
- 4.7% 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, Little Elm
- 1.76% of value
- Home insuranceCensus ACS 2020-2024, Little Elm
- $158 /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 Little Elm?
Each line marks the point where Little Elm's 7-year verdict changes, while all other factors stay the same.
Renting comes out ahead when
- Home prices grow less than 4.9% a year. Texas's long-run rate, 4.7%, is the rate we use.
- The mortgage rate remains above 6.91%.
- A similar home rents for under $2,350 a month, compared with the typical $2,268 here.
- You relocate before year 8.
Buying comes out ahead when
- Home prices rise by more than 4.9% each year.
- You secure a mortgage rate under 6.91% (today's is 7.24%).
- The same home would cost more than $2,350 monthly to rent.
- You remain there for 8 years or more.
Comparing Little Elm with the other 812 cities
| Measure | Little Elm | Median city |
|---|---|---|
| Typical home value | $390,812 | $422,451 |
| Typical rent | $2,268 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.4 (#663 of 813) | 18.5 |
| Home prices, last 10 years | 3.9% a year | 6.2% a year |
| Rents, last 5 years | 1.1% a year | 4% a year |
| Property tax | 1.76% | 0.87% |
| Households that rent | 30% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across Texas
- Too close to call. Houston, TX. Renting leads by $2k.
- Renting has the edge. San Antonio, TX. The result is a $10k lead.
- Renting has the edge. Dallas, TX. The result is a $20k lead.
- Renting has the edge. Fort Worth, TX. The result is a $17k lead.
- Renting has the edge. Austin, TX. The result is a $111k lead.
- Too close to call. El Paso, TX. Buying leads by $2k.
- Renting has the edge. Arlington, TX. The result is a $34k lead.
- Buying has the edge. Corpus Christi, TX. The result is a $4k lead.
- Renting has the edge. Plano, TX. The result is a $105k lead.
- Too close to call. Lubbock, TX. Buying leads by $2k.
- Renting has the edge. Laredo, TX. The result is a $20k lead.
- Renting has the edge. Irving, TX. The result is a $36k lead.