Rent vs buy in Monterey Park, CA
In Monterey Park, California, typical rent is $2,638 /mo and a typical home costs $909,564.
Over 7 years, renting comes out $116k ahead
The calculation uses Monterey Park's typical home value and rent, 20% down and the current mortgage rate. Year 17 marks the break-even point.
Clearly labelled opinion with the math shown. These figures are estimates, not quotes. If you change a number, the stamp changes too.
- How much renting leads by
- $116k after 7 years
- Break-even point
- year 17 when owning catches up
- Actual cost of ownership
- $7,599 /mo year 1, against $2,638 rent
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Which costs less in Monterey Park, renting or buying?
Across 7 years, renting saves $116,005 after counting the money you receive when you sell. For the first 16 years, renting costs less. In year 17, owning catches up.
Renting. Buying. Net cost to date, broken down by year.
Average rent compared with mortgage payment in Monterey Park
Neither rent nor the mortgage tells the whole story. Using Monterey Park's typical price, here are all monthly costs during year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,638 | All of it, every month |
| Mortgage payment | $4,959 | $4,371 of it is interest in year 1 |
| Property tax | $523 | 0.69% of the value a year |
| Insurance | $90 | Census median for the city |
| Upkeep | $758 | 1% of the value a year |
| Owning, cash out | $6,330 | $588 of it builds equity |
| Lost return on the down payment | $1,478 | At 8.3% a year, this is what the cash would earn. |
| Buying costs, spread out | $379 | 3.5% of the price over 7 years |
| True cost of owning | $7,599 | Cash paid after removing equity, plus the two lines above |
The figures behind Monterey Park's result
- Typical home valueZillow ZHVI, September 2026
- $909,564
- Typical rentZillow ZORI, September 2026
- $2,638 /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, California, 1995 to 2025
- 5.3% 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, Monterey Park
- 0.69% of value
- Home insuranceCensus ACS 2020-2024, Monterey Park
- $90 /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
In Monterey Park, what would make the result flip?
Each line marks a threshold where Monterey Park's 7-year verdict changes, while all other factors stay as they are.
Renting comes out ahead when
- We use 5.3% for this calculation, which is California's long-run rate, while home prices grow by less than 6.7% a year.
- The mortgage rate remains above 4.96%.
- Monthly rent for a comparable home is under $3,880 (the local typical rent is $2,638).
- You make your move before year 17.
Buying comes out ahead when
- Home prices rise by more than 6.7% each year.
- You secure a mortgage rate below 4.96%, while today's rate is 7.24%.
- You'd pay more than $3,880 each month to rent the same home.
- You remain there for at least 17 years.
How Monterey Park compares with 812 other cities
| Measure | Monterey Park | Median city |
|---|---|---|
| Typical home value | $909,564 | $422,451 |
| Typical rent | $2,638 /mo | $1,837 /mo |
| Price-to-rent ratio | 28.7 (#82 of 813) | 18.5 |
| Home prices, last 10 years | 6% a year | 6.2% a year |
| Rents, last 5 years | 4.5% a year | 4% a year |
| Property tax | 0.69% | 0.87% |
| Households that rent | 48% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in California
- Renting wins in Los Angeles, CA by $111k.
- Renting wins in San Diego, CA by $108k.
- Renting wins in San Jose, CA by $210k.
- Renting wins in San Francisco, CA by $128k.
- Buying wins in Fresno, CA by $22k.