Rent vs buy in Parma, OH
In Parma, Ohio, the typical rent is $1,263 /mo and the typical home is $215,078.
Over 7 years, renting wins by $25k.
Today's mortgage rate, 20% down, and Parma's typical rent and home value. Year 19 is the break-even point.
Clearly labelled opinion, with the math shown. Estimates, not quotes. If you change a number, the stamp changes.
- How far renting leads
- $25k after 7 years
- Break-even point
- year 19 when owning catches up
- What owning really costs
- $2,075 /mo year 1, against $1,263 rent
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Which costs less in Parma, renting or buying?
After deducting what you receive from the sale, renting costs $24,675 less over 7 years. For the first 18 years, renting costs less. Owning reaches the same cost in year 19.
Rent. Buy. Net cost by year so far.
Average rent compared with the mortgage payment in Parma
Year 1 at Parma's typical price includes more than rent and a mortgage payment. Here are all the monthly costs.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,263 | All of it, every month |
| Mortgage payment | $1,173 | $1,034 of it is interest in year 1 |
| Property tax | $351 | 1.96% of the value a year |
| Insurance | $72 | Census median for the city |
| Upkeep | $179 | 1% of the value a year |
| Owning, cash out | $1,775 | $139 of it builds equity |
| Lost return on the down payment | $350 | The amount the cash would earn each year, at 8.3% |
| Buying costs, spread out | $90 | 3.5% of the price over 7 years |
| True cost of owning | $2,075 | Cash out, take off the equity part, then add the two lines above |
The Parma verdict in numbers
- Typical home valueZillow data, ZHVI, September 2026
- $215,078
- Typical rentZillow data, ZORI, September 2026
- $1,263 each month
- With a 20% down payment, you avoid private mortgage insurance. The engine doesn't model it.
- 20%
- The rate comes from Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US).
- 7.24%
- Growth in home prices from FHFA house price index, Ohio, 1995 to 2025
- Each year: 3.5%
- Savings return rate: 60% S&P 500 with dividends, plus 40% 10-year Treasuries, rebalanced yearly, from 1928 to 2025
- Each year: 8.3%
- Property tax comes from Census ACS 2020-2024, Parma.
- The value times 1.96%
- Home insurance comes from Census ACS 2020-2024, Parma.
- $72 each month
- UpkeepFannie Mae, the low end of 1% to 4%
- Each year, the value times 1%
- Buying costs Freddie Mac, midpoint of 2% to 5%
- The price times 3.5%
- Selling costs Agent commission and closing costs
- The price times 6%
What would change the outcome in Parma?
Every line shows where Parma's 7-year verdict changes, while all other figures remain unchanged.
When renting comes out ahead
- Home prices grow under 5.0% a year; we assume 3.5%, Ohio's long-run pace.
- The mortgage rate remains above 5.19%.
- Monthly rent for this type of home is under $1,530. The local typical figure is $1,263.
- Your move happens before year 19.
When buying comes out ahead
- Home prices rise by more than 5.0% each year.
- You secure a mortgage rate below 5.19%, compared with today's rate of 7.24%.
- You'd pay over $1,530 each month to rent the same home.
- Your stay runs 19 years or longer.
Parma compared with the other 812 cities
| Measure | Parma | Median city |
|---|---|---|
| Typical home value | $215,078 | $422,451 |
| Typical rent | $1,263 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.2 (#674 of 813) | 18.5 |
| Home prices, last 10 years | 7.5% a year | 6.2% a year |
| Rents, last 5 years | 5.9% a year | 4% a year |
| Property tax | 1.96% | 0.87% |
| Households that rent | 28% | 42% |
Sources: Zillow ZHVI. Also ZORI, Census ACS 2020-2024.
Other Ohio cities
- Renting wins by $12k in Columbus, OH.
- Buying wins by $49k in Cleveland, OH.
- Renting wins by $19k in Cincinnati, OH.
- Buying wins by $21k in Toledo, OH.
- Buying wins by $19k in Akron, OH.
- Buying wins by $25k in Dayton, OH.
- Toss-up in Canton, OH, with renting ahead by $2k.
- Buying wins by $7k in Lorain, OH.
- Renting wins by $44k in Hamilton, OH.
- Buy. Youngstown, OH. Buying comes out ahead by $54k.
- Toss-up in Springfield, OH, with renting ahead by $713.
- Renting wins by $34k in Kettering, OH.