Rent vs buy in Orem, UT
In Orem, Utah, the typical rent is $1,512 /mo and the typical home is $500,448.
Renting comes out $57k ahead over 7 years
Using Orem's typical rent and the typical home value, with a 20% down payment and today's mortgage rate. Year 16 is the break-even point.
Clearly labelled opinion, with the math shown. These are estimates, not quotes. Adjust a number and the stamp adjusts with it.
- Renting leads by
- $57k after 7 years
- Break-even point
- the 16th year when owning catches up
- Real cost of owning
- $4,088 monthly year 1, against $1,512 rent
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Is renting or buying cheaper in Orem?
Across 7 years, renting costs $57,208 less, once you count the money that returns to you when you sell. For the first 15 years, renting is the cheaper choice. In year 16, owning catches up.
Renting. Owning it. Net cost so far, year by year.
Average rent compared with the mortgage payment in Orem
In year 1, rent and the mortgage payment don't tell the whole story, so here are all monthly costs using Orem's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,512 | All of it, every month |
| Mortgage payment | $2,728 | $2,405 of it is interest in year 1 |
| Property tax | $171 | 0.41% of the value a year |
| Insurance | $73 | Census median for the city |
| Upkeep | $417 | 1% of the value a year |
| Owning, cash out | $3,389 | $324 of it builds equity |
| Lost return on the down payment | $813 | What the cash would earn yearly at 8.3% |
| Buying costs, spread out | $209 | 3.5% of the price over 7 years |
| True cost of owning | $4,088 | Cash out, then subtract the equity part and add the two lines above |
The numbers behind Orem's verdict
- Typical home value: Zillow ZHVI, September 2026
- $500,448
- Typical rent: Zillow ZORI, September 2026
- $1,512 monthly
- Down payment: 20% avoids private mortgage insurance, which our engine doesn't model
- 20%
- Rate for the mortgage: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA house price index for Utah, 1995 to 2025
- 5.1% annually
- Rent growth: CPI rent of primary residence, growth per year, 2006 to 2026
- 3.5% annually
- What savings earn: 60% in the S&P 500 with dividends and 40% in 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% each year
- Property tax: Census ACS 2020-2024, Orem
- 0.41% of the value
- Home insurance: Census ACS 2020-2024, Orem
- $73 monthly
- UpkeepFannie Mae: 1% to 4% (low end).
- 1% of the value each year
- Purchase costsFreddie Mac: 2% to 5%, middle of the range.
- 3.5% of the price
- Cost of sellingClosing costs plus agent commission
- 6% of the price
What would flip the Orem result?
Every line below is a point where the 7-year verdict for Orem turns, and everything else stays the same.
When renting wins
- Home prices grow at less than 6.4% a year, and the rate we apply is 5.1%, Utah's long-run rate.
- Above 5.20% is where the mortgage rate stays.
- A home like this one rents under $2,120 a month, and the typical rent here is $1,512.
- Before year 16, you move.
When buying wins
- Home prices grow by more than 6.4% a year.
- You secure a mortgage rate under 5.20% (today's is 7.24%).
- More than $2,120 a month is what renting that same home would cost you.
- You stay 16 years or more.
Orem compared with the other 812 cities
| Measure | Orem | Median city |
|---|---|---|
| Typical home value | $500,448 | $422,451 |
| Typical rent | $1,512 /mo | $1,837 /mo |
| Price-to-rent ratio | 27.6 (#97 of 813) | 18.5 |
| Home prices, last 10 years | 7.4% a year | 6.2% a year |
| Rents, last 5 years | 3.2% a year | 4% a year |
| Property tax | 0.41% | 0.87% |
| Households that rent | 42% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
Utah's other cities
- Renting comes out ahead by $83k in Salt Lake City, UT. Rent.
- Renting wins by $39k in West Valley City, UT. Rent.
- Rent. Renting wins by $65k for West Jordan, UT.
- For Provo, UT, renting wins by $47k. Rent.
- Renting wins by $37k in St. George, UT. Rent.
- Rent. Renting wins by $22k for Lehi, UT.
- Renting comes out ahead by $104k in Sandy, UT. Rent.
- For Ogden, UT, renting wins by $41k. Rent.
- Renting comes out ahead by $67k in South Jordan, UT. Rent.
- Rent. Renting wins by $58k for Layton, UT.
- Renting comes out ahead by $116k in Millcreek, UT. Rent.
- Rent. Renting wins by $68k for Herriman, UT.