Rent vs buy in Peabody, MA
Peabody, Massachusetts has a typical rent of $2,836 /mo and home value of $691,379.
Renting comes out $34k ahead over 7 years
Peabody's typical rent and home value form the basis of this calculation, which assumes 20% down and today's mortgage rate. The break-even point is year 10.
This is a clearly labeled opinion with the calculations shown. The figures are estimates, not quotes. The stamp changes when you change a number.
- Renting is ahead by
- $34k after 7 years
- Break-even point
- The 10th year when owning catches up
- Actual cost of owning
- $5,905 each month year 1, against $2,836 rent
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In Peabody, is renting or buying cheaper?
Over 7 years, renting costs $34,479 less. This includes money returned when you sell. For the first 9 years, renting costs less. By year 10, owning catches up.
Rent Home ownership. Net cost by year so far
In Peabody, average rent compared with mortgage payments
At Peabody's typical price, rent and the mortgage don't tell the whole story. Here are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,836 | All of it, every month |
| Mortgage payment | $3,769 | $3,322 of it is interest in year 1 |
| Property tax | $490 | 0.85% of the value a year |
| Insurance | $105 | Census median for the city |
| Upkeep | $576 | 1% of the value a year |
| Owning, cash out | $4,940 | $447 of it builds equity |
| Lost return on the down payment | $1,124 | At 8.3% a year, that's what the cash could earn. |
| Buying costs, spread out | $288 | 3.5% of the price over 7 years |
| True cost of owning | $5,905 | Cash paid, minus the equity portion, plus the two lines listed above |
The Peabody verdict, explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $691,379
- Typical rentZillow ZORI, September 2026
- $2,836 /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, Massachusetts, 1995 to 2025
- 5.1% 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, Peabody
- 0.85% of value
- Home insuranceCensus ACS 2020-2024, Peabody
- $105 /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
Which changes would alter Peabody's result?
Each line shows where Peabody's 7-year verdict changes. Everything else stays as it is.
When renting comes out ahead
- Annual home price growth stays under 5.7%. The rate used is 5.1%, Massachusetts's long-run rate.
- When the mortgage rate remains above 6.36%
- A comparable home's monthly rent falls below $3,210. The typical local rent is $2,836.
- Your move occurs before year 10.
When buying comes out ahead
- Home-price growth exceeds 5.7% each year.
- You lock a mortgage rate under 6.36%. Today's rate is 7.24%.
- The same home's monthly rent costs you more than $3,210.
- You stay for 10 years or longer.
Peabody compared with the other 812 cities
| Measure | Peabody | Median city |
|---|---|---|
| Typical home value | $691,379 | $422,451 |
| Typical rent | $2,836 /mo | $1,837 /mo |
| Price-to-rent ratio | 20.3 (#322 of 813) | 18.5 |
| Home prices, last 10 years | 6% a year | 6.2% a year |
| Property tax | 0.85% | 0.87% |
| Households that rent | 34% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities across Massachusetts
- Renting wins by $10k in Boston, MA.
- Renting wins by $8k in Worcester, MA.
- Buying wins by $18k in Springfield, MA.
- Renting wins by $83k in Cambridge, MA.
- Renting wins by $9k in Lowell, MA.
- Renting wins by $19k in Brockton, MA.
- Renting wins by $45k in Lynn, MA.
- Renting wins by $51k in Quincy, MA.
- Renting wins by $40k in New Bedford, MA.
- Renting wins by $29k in Fall River, MA.
- Renting wins by $317k in Newton, MA.
- It's a toss-up in Lawrence, MA, with renting ahead by $2k.