Rent vs buy in Madera, CA
A typical home in Madera, California costs $423,208, and the typical rent is $2,162 /mo.
Over 7 years, buying comes out ahead by $31k
Today's mortgage rate and a 20% down payment are paired with Madera's typical rent and home value. Year 5 marks the break-even point.
An opinion with clear labels and the math shown. These figures are estimates, not quotes. Adjust a number and the stamp updates.
- Owning is ahead by
- $31k after 7 years
- Break-even point
- year 5 when owning catches up
- Actual cost of owning
- $3,567 /mo year 1, against $2,162 rent
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Is renting or buying cheaper in Madera?
Once you include the money you get back when you sell, buying costs $30,882 less than renting over 7 years. In year 5, owning's net cost falls below renting's and remains lower.
Renting. Ownership option. Net cost to date, grouped by year.
Madera's average rent compared with its mortgage payment
At Madera's typical price, here's the full monthly cost breakdown for year 1. Rent and the mortgage don't tell the whole story.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,162 | All of it, every month |
| Mortgage payment | $2,307 | $2,034 of it is interest in year 1 |
| Property tax | $226 | 0.64% of the value a year |
| Insurance | $91 | Census median for the city |
| Upkeep | $353 | 1% of the value a year |
| Owning, cash out | $2,977 | $274 of it builds equity |
| Lost return on the down payment | $688 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $176 | 3.5% of the price over 7 years |
| True cost of owning | $3,567 | Cash out, minus the equity part, plus the two amounts above |
Figures behind Madera's verdict
- What homes typically cost: Zillow ZHVI, September 2026
- $423,208
- Typical rental amount: Zillow ZORI, September 2026
- $2,162 each month
- The engine does not model private mortgage insurance, which a 20% down payment avoids
- 20%
- Mortgage rate from Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesCalifornia, 1995 through 2025: FHFA home price index
- 5.3% yearly
- Yearly rent growthConsumer price index for primary residence rent, 2006 to 2026
- 3.5% yearly
- Return on savings from 40% in 10-year Treasuries and 60% in the S&P 500 with dividends, rebalanced yearly, 1928 to 2025
- 8.3% yearly
- Property tax: Census ACS 2020-2024, Madera
- 0.64% of the value
- Home insurance: Census ACS 2020-2024, Madera
- $91 each month
- Upkeep: Fannie Mae, lower bound of 1% to 4%
- Annually equals 1% of value.
- Purchase costs: Freddie Mac, middle of 2% to 5%
- 3.5% based on the price
- Sale costs: Agent commission plus closing costs
- 6% based on the price
What would flip the result in Madera?
Each line marks the threshold where Madera's 7-year verdict changes, while every other factor stays as it is.
When renting wins
- Home prices rise under 4.4% a year (our figure: California's long-run rate of 5.3%).
- The mortgage rate holds above 8.53%.
- For this kind of home, monthly rent is under $1,830 (typical here: $2,162).
- Moving before year 5.
Buying wins in these situations
- Home prices rise by more than 4.4% each year.
- You lock in a rate under 8.53% for your mortgage; today's rate is 7.24%.
- You'd pay more than $1,830 monthly to rent that same home.
- You remain for 5 years or more.
Madera compared with the other 812 cities
| Measure | Madera | Median city |
|---|---|---|
| Typical home value | $423,208 | $422,451 |
| Typical rent | $2,162 /mo | $1,837 /mo |
| Price-to-rent ratio | 16.3 (#533 of 813) | 18.5 |
| Home prices, last 10 years | 7.5% a year | 6.2% a year |
| Property tax | 0.64% | 0.87% |
| Households that rent | 45% | 42% |
Data from: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other California cities
- Rent. Los Angeles, CA. Renting has the edge by $111k.
- Rent. San Diego, CA. Renting comes out ahead by $108k.
- Rent. San Jose, CA. Renting comes out ahead by $210k.
- Rent. San Francisco, CA. Renting comes out ahead by $128k.
- Buy. Fresno, CA. Buying comes out ahead by $22k.
- Toss-up. Sacramento, CA. Renting leads by $3k in an even result.
- Rent. Long Beach, CA. The result favors renting by $111k.
- Rent. Oakland, CA. Renting comes out ahead by $44k.
- Buy. Bakersfield, CA. Buying comes out ahead by $11k.
- For Anaheim, CA, renting wins by $115k.
- For Stockton, CA, buying wins by $16k.
- For Riverside, CA, renting wins by $27k.