Rent vs buy in Providence, RI

In Providence, Rhode Island, the typical rent is $2,190 /mo and the typical home is $431,740.

Rent

Over 7 years, renting comes out $6k ahead.

Today's mortgage rate, 20% down and Providence's typical rent and home value form the basis. The break-even point falls in year 8.

The math is shown with a clearly labeled opinion. These figures are estimates rather than quotes. Adjust any number and the stamp updates.

Rental advantage: $6k
When the costs balance: In year 8
Actual ownership cost: $3,899 each month

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With Providence's typical rent and home value, the stamp makes its calculation. Your rent, price and number of years can reverse the result.

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Is it cheaper to rent or buy in Providence?

Across 7 years, renting costs less by $5,628, counting the money you get back when you sell. For the first 7 years, renting is cheaper. By year 8, owning has caught up.

Rent option. Ownership option. Net cost by year so far.

Mortgage payments compared with average rent in Providence

For year 1 at Providence's typical price, here's every monthly cost, including the parts that rent and the mortgage don't cover.

Each month, year 1	Amount	What it is
Rent	$2,190	All of it, every month
Mortgage payment	$2,354	$2,075 of it is interest in year 1
Property tax	$439	1.22% of the value a year
Insurance	$144	Census median for the city
Upkeep	$360	1% of the value a year
Owning, cash out	$3,297	$279 of it builds equity
Lost return on the down payment	$702	At 8.3% a year, this is what the cash would earn
Buying costs, spread out	$180	3.5% of the price over 7 years
True cost of owning	$3,899	Cash out, minus the equity share, plus both entries listed above.

Providence verdict in numbers

Typical home valueZillow ZHVI, September 2026: $431,740
Typical rentZillow ZORI, September 2026: $2,190 /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, Rhode Island, 1995 to 2025: 5% 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, Providence: 1.22% of value
Home insuranceCensus ACS 2020-2024, Providence: $144 /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 alter the result in Providence?

Each row shows where the 7-year Providence verdict changes; all other factors stay as they are.

When renting is the winner

When home prices increase by less than 5.2% each year (our calculation uses 5%, based on Rhode Island's rate over the long term)
The mortgage rate remains higher than 7.01%.
A similar home has monthly rent below $2,250 (the local typical rent is $2,190).
Before year 8, you move.

When buying is the winner

Home prices rise faster than 5.2% each year.
You secure a rate below 7.01% for your mortgage (today's is 7.24%).
The monthly rent for that same home would exceed $2,250.
You stay in the home for 8 years or longer.

How Providence compares with the other 812 cities

Measure	Providence	Median city
Typical home value	$431,740	$422,451
Typical rent	$2,190 /mo	$1,837 /mo
Price-to-rent ratio	16.4 (#524 of 813)	18.5
Home prices, last 10 years	8.4% a year	6.2% a year
Rents, last 5 years	5.8% a year	4% a year
Property tax	1.22%	0.87%
Households that rent	59%	42%

Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.

Other Rhode Island cities

Rent. In Cranston, RI, renting comes out ahead by $29k.

Rent vs buy in Rhode Island: the state's numbers