Rent vs buy in Paramount, CA
In Paramount, California, the typical rent is $2,806 /mo and the typical home $647,972.
A toss-up: the two come out $3,541 apart over 7 years
The calculation assumes 20% down, today's mortgage rate, and Paramount's typical rent and home value. It reaches break-even in year 7.
Opinion, clearly labelled, math included. What you see here are estimates, not quotes. Adjust a number and the stamp updates.
- Gap
- $4k after 7 years
- Break-even point
- Year 7 when owning catches up
- What owning really costs
- $5,418 a month year 1, against $2,806 rent
Change my numbers
The stamp starts from Paramount's typical figures for rent and home value. Your figures for rent, price and years can flip the result.
The city's numbers aren't yours?
Put in your own rent figure, your own price and your own down payment. The stamp updates to match them.
In Paramount, is it cheaper to rent or buy?
Over 7 years, the two choices end up $3,541 apart or less, so small changes decide it. Year 7 is when owning's net cost falls under renting's and remains lower.
The renting side. The owning side. Net cost to date, year by year.
Average rent against mortgage payment in Paramount
Rent and the mortgage payment tell only part of the story. Here are all the monthly costs for year 1, using Paramount's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,806 | All of it, every month |
| Mortgage payment | $3,533 | $3,114 of it is interest in year 1 |
| Property tax | $373 | 0.69% of the value a year |
| Insurance | $68 | Census median for the city |
| Upkeep | $540 | 1% of the value a year |
| Owning, cash out | $4,513 | $419 of it builds equity |
| Lost return on the down payment | $1,053 | What the money would earn yearly at 8.3% |
| Buying costs, spread out | $270 | 3.5% of the price over 7 years |
| True cost of owning | $5,418 | Cash out minus the equity part, plus both lines above |
The Paramount verdict, by the numbers
- Home value, typicalZillow ZHVI, September 2026
- $647,972
- Rent, typicalZillow ZORI, September 2026
- $2,806 a month
- Down payment: 20% keeps private mortgage insurance out, and the engine doesn't model it.
- 20%
- The mortgage rate used: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA's index of house prices, California, 1995 to 2025
- 5.3% per year
- Rent growth, yearly: CPI rent of primary residence, 2006 to 2026
- 3.5% each year
- Return on savings: S&P 500 with dividends at 60%, 10-year Treasuries at 40%, rebalanced each year, 1928 to 2025
- 8.3% per year
- Property tax: Census ACS 2020-2024, Paramount
- 0.69% of the home's value
- Home insurance: Census ACS 2020-2024, Paramount
- $68 a month
- Maintenance: Fannie Mae, lower end of 1% to 4%
- Each year, 1% of value
- Buying costs: Freddie Mac, midpoint of 2% to 5%
- 3.5% of the price
- Selling costsAgent commission and closing costs
- 6% of the price
What could change the Paramount result?
Every line shows where the 7-year verdict in Paramount flips; nothing else changes.
When renting wins
- Home prices grow at less than 5.2% a year (we use California's long-run rate of 5.3%).
- The mortgage rate remains above 7.34%.
- A home like this costs less than $2,770 a month to rent (the local typical rent is $2,806).
- You move ahead of year 7.
When buying wins
- Home prices grow by more than 5.2% a year.
- You lock in a rate below 7.34% on a mortgage (today's rate is 7.24%).
- The same home would cost more than $2,770 a month to rent.
- You remain there for 7 years or more.
How Paramount compares with the other 812 cities
| Measure | Paramount | Median city |
|---|---|---|
| Typical home value | $647,972 | $422,451 |
| Typical rent | $2,806 /mo | $1,837 /mo |
| Price-to-rent ratio | 19.2 (#373 of 813) | 18.5 |
| Home prices, last 10 years | 7.4% a year | 6.2% a year |
| Property tax | 0.69% | 0.87% |
| Households that rent | 57% | 42% |
Data from Zillow ZHVI plus ZORI, Census ACS 2020-2024.
More cities across California
- Rent. Los Angeles, CA. Renting is ahead by $111k.
- Rent. San Diego, CA. Renting is ahead by $108k.
- Rent. San Jose, CA. Renting is ahead by $210k.
- Rent. San Francisco, CA. Renting is ahead by $128k.
- Buy. Fresno, CA. Buying is ahead by $22k.
- Toss-up. Sacramento, CA. Too close to call, though renting is $3k ahead.
- Renters win. Long Beach, CA. Renting comes out ahead by $111k.
- Rent. Oakland, CA. Renting is ahead by $44k.
- Buy. Bakersfield, CA. Buying is ahead by $11k.
- Rent. Anaheim, CA. Renting is ahead by $115k.
- Buy. In Stockton, CA, buying comes out ahead by $16k.
- Rent. In Riverside, CA, renting comes out ahead by $27k.