Rent vs buy in Mississippi
Buying comes out ahead in 2 of 3 cities of 50,000+, while renting wins in 1, based on today's numbers over 7 years.
Rent or buy in Mississippi cities
| City | Verdict | 7-year result | Break-even (up to 30 yrs) | Typical home | Rent /mo |
|---|---|---|---|---|---|
| Gulfport | Buy | buying wins by $12k | year 6 | $206,122 | $1,467 |
| Southaven | Rent | renting wins by $9k | year 9 | $273,449 | $1,575 |
Sources: Zillow Home Value and Observed Rent indexes. Our verdicts use the rent vs buy method with 20% down and a period of 7 years.
The take for Mississippi
Across Mississippi's 3 cities of 50,000+, buying wins over renting in 2 of them over 7 years. Which option suits you best comes down to how monthly rent lines up with local home prices. In Jackson, a typical home goes for $83,517, and rent runs $1,228 a month. Over 7 years, buying comes out ahead by $57k because the home price sits so low next to rent. You break even in year 2. In Gulfport, the choice is closer: a typical home costs $206,122, and rent is $1,467 monthly. Over 7 years, buying stays ahead by $12k, but your break-even point doesn't come until year 6.
In a pricier market, the math changes in favor of renting. A typical home in Southaven costs $273,449, while monthly rent is $1,575. Without a big jump in rent, paying that much more for a house slows your payoff. Over 7 years, renting comes out ahead by $9k there, and buying doesn't reach break even until year 9. If a sooner move is possible, renting saves you money.
Across the state, a typical home is worth $195k. 30% of households rent, compared with 35% across the US. Median rent comes to $954 a month, well under the US figure of $1,413 a month. Buying means paying a 0.72% property tax, which beats the 0.94% US rate and cuts your bill. Homeowners insurance costs you $1,541 a year, still above the $1,308 a year US average. Over the last 10 years, home prices rose 5.3% a year, compared with 3.5% yearly over the long run. Owning a home lets that steady rise build value for you.
Our take: in Mississippi, low cost cities are places we think you should buy. Pricier spots are places to rent, unless your stay runs 9 years or more.