Rent vs buy in San Marcos, TX
In San Marcos, Texas, the typical rent is $1,433 /mo and the typical home costs $305,061.
Renting is ahead by $31k over 7 years
For San Marcos's typical home value and rent, the figures use 20% down and today's mortgage rate. The break-even point is year 15.
Clearly labeled opinion with calculations shown. These figures are estimates rather than quotes. Any adjustment to a figure changes the stamp.
- Lead for renting
- $31k after 7 years
- Point of break-even
- In year 15 when owning catches up
- Actual cost to own
- $2,845 per month year 1, against $1,433 rent
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Should you rent or buy in San Marcos to spend less?
Across 7 years, renting saves $30,727 once you include the money you get back from selling. For the first 14 years, renting costs less. By year 15, owning has caught up.
Rent option. Buy option. Running net cost for each year.
San Marcos average rent compared with mortgage payments
Rent and mortgage don't tell the whole story. At San Marcos's typical price, these are all the monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,433 | All of it, every month |
| Mortgage payment | $1,663 | $1,466 of it is interest in year 1 |
| Property tax | $391 | 1.54% of the value a year |
| Insurance | $110 | Census median for the city |
| Upkeep | $254 | 1% of the value a year |
| Owning, cash out | $2,419 | $197 of it builds equity |
| Lost return on the down payment | $496 | What your cash would earn each year at 8.3% |
| Buying costs, spread out | $127 | 3.5% of the price over 7 years |
| True cost of owning | $2,845 | Take the cash out, subtract the equity part, then add the two lines above. |
San Marcos verdict explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $305,061
- Typical rentZillow ZORI, September 2026
- $1,433 /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, Texas, 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, San Marcos
- 1.54% of value
- Home insuranceCensus ACS 2020-2024, San Marcos
- $110 /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 San Marcos verdict?
Each line shows the point where the San Marcos 7-year verdict changes. Everything else stays as it is.
Renting comes out ahead when
- Home prices grow below 5.9% each year; the model uses 4.7%, Texas's long-run rate.
- A mortgage rate above 5.45% remains in place.
- This type of home rents for under $1,760 monthly, while the local typical is $1,433.
- You move before the year 15 mark.
Buying comes out ahead when
- Each year, home prices grow at a rate above 5.9%.
- You lock in a mortgage rate under 5.45% (today's: 7.24%).
- If you rented the same home, you'd pay more than $1,760 a month.
- You remain for 15 years or more.
How San Marcos compares with the other 812 cities
| Measure | San Marcos | Median city |
|---|---|---|
| Typical home value | $305,061 | $422,451 |
| Typical rent | $1,433 /mo | $1,837 /mo |
| Price-to-rent ratio | 17.7 (#444 of 813) | 18.5 |
| Home prices, last 10 years | 3.6% a year | 6.2% a year |
| Rents, last 5 years | 1% a year | 4% a year |
| Property tax | 1.54% | 0.87% |
| Households that rent | 69% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Texas
- It's a toss-up. Houston, TX. Renting is ahead by $2k.
- Renting is cheaper. San Antonio, TX. Renting wins by $10k.
- Renting is cheaper. Dallas, TX. Renting wins by $20k.
- Renting is cheaper. Fort Worth, TX. Renting wins by $17k.
- Renting is cheaper. Austin, TX. Renting wins by $111k.
- It's a toss-up. El Paso, TX. Buying is ahead by $2k.
- Renting is cheaper. Arlington, TX. Renting wins by $34k.
- Buying is cheaper. Corpus Christi, TX. Buying wins by $4k.
- Renting is cheaper. Plano, TX. Renting wins by $105k.
- It's a toss-up. Lubbock, TX. Buying is ahead by $2k.
- Renting is cheaper. Laredo, TX. Renting wins by $20k.
- Renting is cheaper. Irving, TX. Renting wins by $36k.