Rent vs buy in Sacramento, CA
In Sacramento, California, typical rent is $2,045 /mo and a typical home costs $470,552.
Over 7 years, they're nearly even at $3,285 apart
The calculation uses 20% down and today's mortgage rate, based on Sacramento's typical rent and home value. It reaches break-even in year 8.
Clearly labeled opinion with the math shown. These are estimates, not quotes. The stamp updates when you change a number.
- Gap
- $3k after 7 years
- Break-even point
- year 8 when owning catches up
- Full cost of ownership
- $4,007 /mo year 1, against $2,045 rent
Change my numbers
The stamp draws its figures from Sacramento's usual rent and home price. A different rent, price or time period can flip the result.
Do your numbers differ from the city's?
Enter your own rent, price and down payment. Your entries change the stamp.
Is it cheaper to rent or buy in Sacramento?
Over 7 years, the options come within $3,285 of each other, and small changes determine the outcome. For the first 7 years, renting costs less. In year 8, owning catches up.
The renting option. The owning option. Net costs shown for each year so far.
Average rent and mortgage payment compared in Sacramento
Rent and the mortgage don't tell the whole story. Here are all monthly costs for year 1 at Sacramento's usual home price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,045 | All of it, every month |
| Mortgage payment | $2,565 | $2,261 of it is interest in year 1 |
| Property tax | $298 | 0.76% of the value a year |
| Insurance | $95 | Census median for the city |
| Upkeep | $392 | 1% of the value a year |
| Owning, cash out | $3,351 | $304 of it builds equity |
| Lost return on the down payment | $765 | What cash would earn each year at 8.3% |
| Buying costs, spread out | $196 | 3.5% of the price over 7 years |
| True cost of owning | $4,007 | Cash out minus the equity portion, then add the two lines above. |
The Sacramento verdict in numbers
- Typical home value from Zillow ZHVI, September 2026
- $470,552
- Typical rent from Zillow ZORI, September 2026
- $2,045 per month
- Private mortgage insurance isn't modeled by the engine, and a 20% down payment avoids it.
- 20%
- Mortgage rate source: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- FHFA house price index: home price growthCalifornia, 1995 to 2025
- Each year: 5.3%
- Yearly rent growth for CPI rent of primary residence2006 to 2026
- Each year: 3.5%
- Return on savings: 40% 10-year Treasuries and 60% S&P 500 with dividends, rebalanced yearly, 1928 to 2025
- Annual return: 8.3%
- Property tax. Census source: ACS 2020-2024, Sacramento
- 0.76% of the home's value
- Home insurance. Census source: ACS 2020-2024, Sacramento
- Each month: $95
- MaintenanceFannie Mae, 1% to 4%, low end
- Annual cost: 1% of value
- Buying costsFreddie Mac, 2% to 5%, middle
- 3.5% based on price
- Selling costsAgent commission and closing costs
- A figure equal to 6% of the price
Which change would flip the Sacramento result?
Each line marks where the 7-year verdict in Sacramento shifts, with all other inputs left alone.
When renting wins
- Home prices grow at under 5.4% each year (our 5.3% figure is California's rate over the long run).
- The rate on the mortgage remains above 7.12%.
- A home like this has a monthly rent under $2,080 (the typical rent here is $2,045).
- You move before the 8th year.
When buying wins
- Home values rise at more than 5.4% a year.
- You fix a mortgage rate under 7.12% (today's is 7.24%).
- That same home would cost more than $2,080 a month to rent.
- You stay 8 years or more.
Sacramento compared with the other 812 cities
| Measure | Sacramento | Median city |
|---|---|---|
| Typical home value | $470,552 | $422,451 |
| Typical rent | $2,045 /mo | $1,837 /mo |
| Price-to-rent ratio | 19.2 (#378 of 813) | 18.5 |
| Home prices, last 10 years | 5.1% a year | 6.2% a year |
| Rents, last 5 years | 2.8% a year | 4% a year |
| Property tax | 0.76% | 0.87% |
| Households that rent | 48% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
More cities in California
- Renting leads by $111k in Los Angeles, CA.
- Renting leads by $108k in San Diego, CA.
- Rent. Renting wins by $210k in San Jose, CA.
- Renting leads by $128k in San Francisco, CA.
- Buying leads by $22k in Fresno, CA.
- Rent. You come out ahead by $111k renting in Long Beach, CA.
- Rent. Oakland, CA. Renting comes out ahead by $44k.
- Buy. Bakersfield, CA. Buying comes out ahead by $11k.
- Rent. Anaheim, CA. Renting comes out ahead by $115k.
- Buy. Stockton, CA. Buying comes out ahead by $16k.
- Rent. Riverside, CA. Renting comes out ahead by $27k.
- Rent. Irvine, CA. Renting comes out ahead by $263k.