Rent vs buy in Perth Amboy, NJ
The typical rent in Perth Amboy, New Jersey is $2,540 /mo and the typical home price is $493,399.
Over 7 years, renting comes out ahead by $45k.
Today's mortgage rate and 20% down apply here, using Perth Amboy's typical rent and the typical home value. The break-even point is year 15.
Our opinion, clearly labelled, with the math shown. These are estimates, not quotes. If you change a number, the stamp changes.
- Renting leads by
- $45k after 7 years
- Break-even point
- Year 15 when owning catches up
- Real cost of owning
- $4,755 a month year 1, against $2,540 rent
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Should you rent or buy in Perth Amboy to spend less?
Over 7 years, renting costs $44,923 less once you count the money you get back when you sell. For the first 14 years, renting costs less. By year 15, owning catches up.
Renting Owning Net cost so far, broken down by year.
Average rent compared with the mortgage payment in Perth Amboy
Rent and mortgage payments don't tell the whole story. Below is a list of every monthly cost for year 1. Perth Amboy's figures use the typical home price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,540 | All of it, every month |
| Mortgage payment | $2,690 | $2,371 of it is interest in year 1 |
| Property tax | $868 | 2.11% of the value a year |
| Insurance | $98 | Census median for the city |
| Upkeep | $411 | 1% of the value a year |
| Owning, cash out | $4,067 | $319 of it builds equity |
| Lost return on the down payment | $802 | At 8.3% a year, that's what the cash would earn. |
| Buying costs, spread out | $206 | 3.5% of the price over 7 years |
| True cost of owning | $4,755 | Take the cash paid out, subtract its equity portion, then add both lines above. |
The math behind Perth Amboy's verdict
- Typical home valueZillow ZHVI, September 2026
- $493,399
- Typical rentZillow ZORI, September 2026
- $2,540 /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, New Jersey, 1995 to 2025
- 4.7% 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, Perth Amboy
- 2.11% of value
- Home insuranceCensus ACS 2020-2024, Perth Amboy
- $98 /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 would change the result in Perth Amboy?
Each line shows where the 7-year verdict for Perth Amboy changes. Everything else stays the same.
Renting comes out ahead when
- Prices of homes increase at a rate below 5.8% each year (our figure is 4.7%, taken from New Jersey's long-run average).
- The rate stays higher than 5.62% for the mortgage.
- A home like this has rent below $3,020 monthly, compared with the local typical of $2,540.
- Your move takes place before year 15.
Buying comes out ahead when
- Home prices rise by more than 5.8% a year.
- You secure a mortgage rate under 5.62% (today's is 7.24%).
- You would pay more than $3,020 a month to rent the same home.
- You remain for 15 years or more.
Perth Amboy compared with the other 812 cities
| Measure | Perth Amboy | Median city |
|---|---|---|
| Typical home value | $493,399 | $422,451 |
| Typical rent | $2,540 /mo | $1,837 /mo |
| Price-to-rent ratio | 16.2 (#541 of 813) | 18.5 |
| Home prices, last 10 years | 8% a year | 6.2% a year |
| Property tax | 2.11% | 0.87% |
| Households that rent | 65% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
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