Rent vs buy in New Orleans, LA
In New Orleans, Louisiana, typical monthly rent is $1,633 and the typical home value is $241,895.
Over 7 years, the two choices differ by $1,340, making it a toss-up
Using today's mortgage rate and a 20% down payment, the figures reflect the typical rent and home value for New Orleans's market. The break-even point arrives in year 8.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. The stamp updates when you change a number.
- Gap
- $1k after 7 years
- Break-even point
- year 8 when owning catches up
- Actual cost of owning
- $2,303 /mo year 1, against $1,633 rent
Change my numbers
The stamp uses the typical rent and home value for New Orleans's market. What you enter for rent, price and years can reverse the outcome.
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Enter the rent, price and down payment that apply to you. Your entries update the stamp.
Is it cheaper to rent or buy in New Orleans?
After 7 years, the paths are within $1,340 of one another, and small changes decide which one wins. For the first 7 years, renting costs less. In year 8, owning catches up with renting.
Renting Owning Net cost to date, by year.
Average rent compared with the mortgage payment in New Orleans
Rent and mortgage don't cover every cost. Using New Orleans's typical price, here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,633 | All of it, every month |
| Mortgage payment | $1,319 | $1,162 of it is interest in year 1 |
| Property tax | $167 | 0.83% of the value a year |
| Insurance | $278 | Census median for the city |
| Upkeep | $202 | 1% of the value a year |
| Owning, cash out | $1,966 | $156 of it builds equity |
| Lost return on the down payment | $393 | Annual return on the cash at 8.3% |
| Buying costs, spread out | $101 | 3.5% of the price over 7 years |
| True cost of owning | $2,303 | Cash out, minus the equity portion, plus the two amounts listed above |
Figures behind the New Orleans result
- Typical home valueZillow ZHVI, September 2026
- $241,895
- Typical rentZillow ZORI, September 2026
- $1,633 /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, Louisiana, 1995 to 2025
- 3.6% 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, New Orleans
- 0.83% of value
- Home insuranceCensus ACS 2020-2024, New Orleans
- $278 /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 New Orleans verdict?
Each line shows where New Orleans's 7-year verdict changes, with all other factors kept as they are.
When renting is the better choice
- With home prices growing slower than 3.7% a year, the calculation uses 3.6%. That's Louisiana's long-run rate.
- The rate for a mortgage stays higher than 7.14%.
- A similar home costs less than $1,650 a month to rent (the local typical rent is $1,633).
- Your move happens before year 8.
When buying is the better choice
- Home prices rise by more than 3.7% a year.
- You secure a mortgage rate under 7.14% (today's rate is 7.24%).
- You would pay more than $1,650 each month to rent the same home.
- You remain in the home for 8 years or longer.
How New Orleans compares with the other 812 cities
| Measure | New Orleans | Median city |
|---|---|---|
| Typical home value | $241,895 | $422,451 |
| Typical rent | $1,633 /mo | $1,837 /mo |
| Price-to-rent ratio | 12.3 (#751 of 813) | 18.5 |
| Home prices, last 10 years | 1.6% a year | 6.2% a year |
| Rents, last 5 years | 2.8% a year | 4% a year |
| Property tax | 0.83% | 0.87% |
| Households that rent | 49% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Louisiana
- Rent. For Baton Rouge, LA, renting is ahead by $10k.
- Buy. For Shreveport, LA, buying leads by $21k.
- Rent. In Lafayette, LA, renting wins by $8k.
- Buy. For Lake Charles, LA, buying leads by $6k.
- Toss-up. Renting leads by $4k in Kenner, LA, so the result is close.
- Buy. For Bossier City, LA, buying leads by $15k.