Rent vs buy in Mobile, AL
For Mobile, Alabama, the typical rent is $1,258 /mo and the typical home is $196,696.
Over 7 years, buying comes out ahead by $5k.
Today's mortgage rate and 20% down apply alongside Mobile's typical rent and home value. Break-even happens in year 6.
An opinion, clearly labelled, with the math shown. These are estimates, not quotes. Adjust any number and the stamp updates.
- Owning comes out ahead by
- $5k after 7 years
- Break even point
- Year 6 when owning catches up
- What owning really costs
- $1,746 /mo year 1, against $1,258 rent
Change my numbers
The stamp takes Mobile's typical figures for rent and for home value. Your own rent, price and years can flip the result.
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Type in the rent, price and down payment you want to use. The stamp updates to match.
Is it cheaper to rent or buy in Mobile?
Over 7 years, buying runs $5,125 cheaper, counting what you get back from selling. Owning's net cost falls below renting's during year 6 and stays lower.
Renting option. Owning option. Net cost to date, year by year.
Average rent compared with the mortgage payment in Mobile
Rent and the mortgage don't cover everything, so here are all the monthly costs in year 1, using Mobile's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,258 | All of it, every month |
| Mortgage payment | $1,072 | $945 of it is interest in year 1 |
| Property tax | $82 | 0.5% of the value a year |
| Insurance | $153 | Census median for the city |
| Upkeep | $164 | 1% of the value a year |
| Owning, cash out | $1,471 | $127 of it builds equity |
| Lost return on the down payment | $320 | What that cash would bring in at 8.3% a year |
| Buying costs, spread out | $82 | 3.5% of the price over 7 years |
| True cost of owning | $1,746 | Cash out, take out the equity part, then add the two lines above |
The numbers behind Mobile's verdict
- Typical home valueZillow ZHVI, September 2026
- $196,696
- Typical rentZillow ZORI, September 2026
- $1,258 /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, Alabama, 1995 to 2025
- 3.7% 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, Mobile
- 0.5% of value
- Home insuranceCensus ACS 2020-2024, Mobile
- $153 /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 flip the verdict in Mobile?
Each line marks the point where the 7-year verdict changes in Mobile, with all other inputs staying as they are.
Renting wins if
- Home prices grow at a rate under 3.4% a year (3.7% is Alabama's long-run rate, which we use).
- The rate on the mortgage holds above 7.70%.
- Homes like this one rent for under $1,200 a month (here the typical rent is $1,258).
- Moving before year 6.
Buying wins if
- Home prices rise by more than 3.4% a year.
- You lock in a mortgage rate under 7.70% (today's is 7.24%).
- For this same home, your monthly rent would be more than $1,200.
- Your stay lasts 6 years or longer.
Mobile against 812 other cities
| Measure | Mobile | Median city |
|---|---|---|
| Typical home value | $196,696 | $422,451 |
| Typical rent | $1,258 /mo | $1,837 /mo |
| Price-to-rent ratio | 13.0 (#724 of 813) | 18.5 |
| Home prices, last 10 years | 5.3% a year | 6.2% a year |
| Rents, last 5 years | 5% a year | 4% a year |
| Property tax | 0.50% | 0.87% |
| Households that rent | 46% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Alabama cities
- Rent. Huntsville, AL. Here renting comes out ahead by $30k.
- Buy. Birmingham, AL. Here buying comes out ahead by $44k.
- Buy. Montgomery, AL. Here buying comes out ahead by $38k.
- Buy. Tuscaloosa, AL. Here buying comes out ahead by $26k.
- Rent. Hoover, AL. Here renting comes out ahead by $113k.
- Rent. Auburn, AL. Here renting comes out ahead by $65k.
- Toss-up. Dothan, AL. The result is a toss-up, but buying is ahead by $2k.
- Rent. Madison, AL. Here renting comes out ahead by $71k.
- Rent. Decatur, AL. Here renting comes out ahead by $22k.