Rent vs buy in Pontiac, MI
In Pontiac, Michigan, the typical rent is $1,351 /mo and the typical home value is $135,258.
Buying comes out ahead by $45k over 7 years
With Pontiac's typical rent and home value, this comparison assumes 20% down and today's mortgage rate. The break-even point arrives in year 2.
A clearly labeled opinion with the math shown. These are estimates, not quotes. If you change a number, the stamp changes with it.
- How far owning is ahead
- $45k after 7 years
- Break-even point
- year 2 when owning catches up
- Actual cost of owning
- $1,253 /mo year 1, against $1,351 rent
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Is renting or buying cheaper in Pontiac?
Over 7 years, buying costs $44,927 less, including the money you get back when you sell. In year 2, owning's net cost falls below renting's and remains lower.
Renting. Cost of owning. Year-by-year net cost.
How average rent compares with mortgage payments in Pontiac
At Pontiac's typical price, these two payments don't cover everything. Here are all monthly costs for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,351 | All of it, every month |
| Mortgage payment | $737 | $650 of it is interest in year 1 |
| Property tax | $116 | 1.03% of the value a year |
| Insurance | $98 | Census median for the city |
| Upkeep | $113 | 1% of the value a year |
| Owning, cash out | $1,064 | $87 of it builds equity |
| Lost return on the down payment | $220 | The amount the cash would earn each year at 8.3% |
| Buying costs, spread out | $56 | 3.5% of the price over 7 years |
| True cost of owning | $1,253 | Cash out minus the equity portion, plus the two amounts above |
The figures behind Pontiac's verdict
- Typical home valueZillow ZHVI, September 2026
- $135,258
- Typical rentZillow ZORI, September 2026
- $1,351 /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, Michigan, 1995 to 2025
- 3.8% 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, Pontiac
- 1.03% of value
- Home insuranceCensus ACS 2020-2024, Pontiac
- $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 reverse the result in Pontiac?
Each line shows where Pontiac's 7-year verdict changes, with every other factor staying the same.
Renting wins under these conditions
- Annual growth in home prices falls under -1.2%. Our calculation applies 3.8%, based on Michigan's rate over the long run.
- The mortgage rate holds above 13.06%.
- Less than $870 a month is the rent for a home like this. Here, the typical amount is $1,351.
- Your move happens before year 2.
Buying wins if
- Each year, home prices grow faster than -1.2%.
- Today's rate is 7.24%. You secure a mortgage rate below 13.06%.
- Monthly rent for that same home would exceed $870.
- Your stay lasts 2 years or longer.
The other 812 cities compared with Pontiac
| Measure | Pontiac | Median city |
|---|---|---|
| Typical home value | $135,258 | $422,451 |
| Typical rent | $1,351 /mo | $1,837 /mo |
| Price-to-rent ratio | 8.3 (#805 of 813) | 18.5 |
| Home prices, last 10 years | 10.6% a year | 6.2% a year |
| Rents, last 5 years | 5.2% a year | 4% a year |
| Property tax | 1.03% | 0.87% |
| Households that rent | 53% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Michigan cities
- Buy. Detroit, MI. Buying comes out ahead by $72k.
- Rent. Grand Rapids, MI. Renting comes out ahead by $20k.
- Buy. Warren, MI. Buying comes out ahead by $7k.
- Rent. Sterling Heights, MI. Renting comes out ahead by $32k.
- Rent. Ann Arbor, MI. Renting comes out ahead by $124k.
- Toss-up. Lansing, MI. Renting and buying are close, with buying ahead by $2k.
- Buy. Dearborn, MI. The advantage for buying totals $18k.
- Rent. Livonia, MI. Renting comes out ahead by $26k.
- Rent. Troy, MI. Renting comes out ahead by $89k.
- Rent. Farmington Hills, MI. Renting comes out ahead by $95k.
- Rent. Westland, MI. Renting comes out ahead by $7k.
- Buy. Flint, MI. The advantage for buying reaches $39k.