Rent vs buy in Palatine, IL
Palatine, Illinois has a typical home price of $389,955 and typical rent of $1,895 /mo.
Across 7 years, renting comes out ahead by $93k.
Today's mortgage rate, with 20% down and Palatine's typical rent and home value. There is no break-even within 30 years.
Clearly marked opinion, with the math shown. These are estimates, not quotes. If you change a number, the stamp changes too.
- Renting leads by
- $93k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Actual cost of ownership
- $3,821 /mo year 1, against $1,895 rent
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Is renting or buying cheaper in Palatine?
Once you count the money returned when you sell, renting costs $93,059 less over 7 years. Renting's net cost is below owning's for each year shown. Buying never catches up within 30 years.
Rent. Home ownership. Net cost so far, shown year by year.
Average rent compared with mortgage payment in Palatine
Year 1 includes every monthly cost at Palatine's typical price. Rent and the mortgage tell only part of the story.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,895 | All of it, every month |
| Mortgage payment | $2,126 | $1,874 of it is interest in year 1 |
| Property tax | $734 | 2.26% of the value a year |
| Insurance | $91 | Census median for the city |
| Upkeep | $325 | 1% of the value a year |
| Owning, cash out | $3,276 | $252 of it builds equity |
| Lost return on the down payment | $634 | At 8.3% a year, this is what the cash would earn |
| Buying costs, spread out | $162 | 3.5% of the price over 7 years |
| True cost of owning | $3,821 | Subtract the equity part from cash out, then add the two lines above. |
Palatine verdict numbers
- Typical home valueZillow ZHVI, September 2026
- $389,955
- Typical rentZillow ZORI, September 2026
- $1,895 /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, Illinois, 1995 to 2025
- 3.3% 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, Palatine
- 2.26% of value
- Home insuranceCensus ACS 2020-2024, Palatine
- $91 /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 change would reverse the verdict in Palatine?
Each line shows where Palatine's 7-year result changes, with all other figures staying the same.
Renting wins if
- For home prices growing slower than 6.3% a year, our calculation uses 3.3%, Illinois's long-run rate.
- A mortgage rate remains higher than 2.93%.
- For a similar home, monthly rent is under $2,890. Here, the typical amount is $1,895.
- At these numbers, owning never catches up with renting, even if you move during the next 30 years.
Buying wins if
- Home prices rise by more than 6.3% a year.
- A mortgage rate below 2.93% is the rate you secure. Today's rate is 7.24%.
- You'd pay over $2,890 a month to rent the same home.
How Palatine compares with the other 812 cities
| Measure | Palatine | Median city |
|---|---|---|
| Typical home value | $389,955 | $422,451 |
| Typical rent | $1,895 /mo | $1,837 /mo |
| Price-to-rent ratio | 17.1 (#486 of 813) | 18.5 |
| Home prices, last 10 years | 4.6% a year | 6.2% a year |
| Rents, last 5 years | 6.7% a year | 4% a year |
| Property tax | 2.26% | 0.87% |
| Households that rent | 33% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities across Illinois besides this one
- Too close to call: Chicago, IL results. Buying leads by $3k.
- Renting wins. Aurora, IL results. The difference is $12k.
- Renting wins. Naperville, IL results. The difference is $198k.
- Renting wins. Joliet, IL results. The difference is $30k.
- Renting wins. Rockford, IL results. The difference is $22k.
- Renting wins. Elgin, IL results. The difference is $58k.
- Renting wins. Springfield, IL results. The difference is $13k.
- Buying wins. Peoria, IL results. The difference is $15k.
- Renting wins. Champaign, IL results. The difference is $29k.
- Renting wins. Waukegan, IL results. The difference is $24k.
- Renting wins. Cicero, IL results. The difference is $71k.
- Renting wins. Bloomington, IL results. The difference is $68k.