Rent vs buy in Rochester, MN
Rochester, Minnesota sees a typical rent of $1,602 /mo and a typical home at $340,589.
Over 7 years, renting comes out ahead by $32k.
The figures use Rochester's typical rent and home value, plus a 20% down payment and today's mortgage rate. The break-even point falls in year 15.
Clearly labeled opinion with the math. These are estimates rather than quotes. Adjust a number, and the stamp will change.
- Renting's lead amount
- $32k after 7 years
- Point where costs match
- In year 15 when owning catches up
- Actual cost of ownership
- $3,036 each month year 1, against $1,602 rent
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The stamp relies on Rochester's numbers: its typical rent and home value. Your rent, price and years may change the result.
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In Rochester, would renting or buying cost less?
After including money returned when you sell, renting costs $31,570 less over 7 years. For the first 14 years, renting costs less. By year 15, owning catches up.
Rent. Cost of owning. The net cost so far, year by year.
In Rochester, how does average rent compare with the mortgage payment?
Rent and your mortgage payment don't tell the whole story. Here are all the monthly costs in year 1, figured at Rochester's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,602 | All of it, every month |
| Mortgage payment | $1,857 | $1,637 of it is interest in year 1 |
| Property tax | $298 | 1.05% of the value a year |
| Insurance | $122 | Census median for the city |
| Upkeep | $284 | 1% of the value a year |
| Owning, cash out | $2,561 | $220 of it builds equity |
| Lost return on the down payment | $554 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $142 | 3.5% of the price over 7 years |
| True cost of owning | $3,036 | Cash out, less the equity portion, plus the two items listed above |
The figures behind the verdict for Rochester
- Typical home valueZillow ZHVI, September 2026
- $340,589
- Typical rentZillow ZORI, September 2026
- $1,602 /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, Minnesota, 1995 to 2025
- 4.3% 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, Rochester
- 1.05% of value
- Home insuranceCensus ACS 2020-2024, Rochester
- $122 /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 could change the Rochester result?
Each line marks where the 7-year verdict for Rochester flips, with everything else held as it is.
When renting wins
- Home prices grow at less than 5.4% a year (we use Minnesota's long-run rate of 4.3%).
- The mortgage rate remains above 5.59%.
- Monthly rent for a similar home is less than $1,940 (typical here: $1,602).
- You move before the 15th year.
When buying wins
- Annual home price growth exceeds 5.4%.
- You lock in a mortgage rate under 5.59% (today's is 7.24%).
- Monthly rent for that same home costs more than $1,940.
- You remain there for 15 years or longer.
How Rochester compares with the other 812 cities
| Measure | Rochester | Median city |
|---|---|---|
| Typical home value | $340,589 | $422,451 |
| Typical rent | $1,602 /mo | $1,837 /mo |
| Price-to-rent ratio | 17.7 (#446 of 813) | 18.5 |
| Home prices, last 10 years | 5.6% a year | 6.2% a year |
| Rents, last 5 years | 4.1% a year | 4% a year |
| Property tax | 1.05% | 0.87% |
| Households that rent | 35% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Minnesota
- Renting wins by $17k in Minneapolis, MN.
- Renting wins by $21k in St. Paul, MN.
- Renting wins by $35k in Bloomington, MN.
- Renting wins by $28k in Duluth, MN.
- Renting wins by $41k in Brooklyn Park, MN.
- Renting wins by $37k in Woodbury, MN.
- Renting wins by $88k in Plymouth, MN.
- Renting wins by $58k in Lakeville, MN.
- Renting wins by $6k in Blaine, MN.
- Renting wins by $20k in Maple Grove, MN.
- Renting wins by $22k in St. Cloud, MN.
- Renting wins by $52k in Eagan, MN.