Rent vs buy in Sherman, TX
In Sherman, Texas, the typical rent is $1,287 /mo and the typical home costs $247,900.
Renting comes out ahead by $17k over 7 years
Today's mortgage rate and 20% down apply, along with Sherman's typical rent and home value. Break-even arrives in year 12.
An opinion, clearly labelled, with the math shown. These figures are estimates, not quotes. Change any number and the stamp changes with it.
- Rent leads by
- $17k after 7 years
- Break-even point
- in year 12 when owning catches up
- Real cost of owning
- $2,354 per month year 1, against $1,287 rent
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The stamp relies on Sherman's typical rent and home value. Different numbers for rent, price and years can reverse the result.
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In Sherman, is renting or buying cheaper?
Once you count the money you get back from selling, renting costs $16,652 less over 7 years. For the first 11 years, renting costs less. In year 12, owning catches up.
Rent option Buy option Net cost to date, shown by year.
Sherman: average rent compared with mortgage payment
The rent and mortgage payment don't tell you everything. Here are all monthly costs for year 1, based on Sherman's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,287 | All of it, every month |
| Mortgage payment | $1,352 | $1,191 of it is interest in year 1 |
| Property tax | $283 | 1.37% of the value a year |
| Insurance | $167 | Census median for the city |
| Upkeep | $207 | 1% of the value a year |
| Owning, cash out | $2,008 | $160 of it builds equity |
| Lost return on the down payment | $403 | Cash earnings at 8.3% a year |
| Buying costs, spread out | $103 | 3.5% of the price over 7 years |
| True cost of owning | $2,354 | Cash out, minus the equity share, plus both entries listed above |
Sherman verdict: the numbers behind it
- Typical home valueZillow ZHVI, September 2026
- $247,900
- Typical rentZillow ZORI, September 2026
- $1,287 /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, Sherman
- 1.37% of value
- Home insuranceCensus ACS 2020-2024, Sherman
- $167 /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 Sherman result?
These lines mark where the 7-year Sherman result switches, while every other input stays the same.
Renting comes out ahead when
- Home prices grow at under 5.5% a year (we use Texas's long-run rate of 4.7%).
- The rate on a mortgage remains above 6.05%.
- Comparable homes rent for under $1,470 monthly, compared with the local typical of $1,287.
- You make the move before year 12.
Buying comes out ahead when
- Home prices rise by more than 5.5% each year.
- You lock in a mortgage rate under 6.05% (today's is 7.24%).
- You'd pay more than $1,470 a month to rent the same home.
- You remain for 12 years or more.
How Sherman compares with the other 812 cities
| Measure | Sherman | Median city |
|---|---|---|
| Typical home value | $247,900 | $422,451 |
| Typical rent | $1,287 /mo | $1,837 /mo |
| Price-to-rent ratio | 16.1 (#551 of 813) | 18.5 |
| Home prices, last 10 years | 6% a year | 6.2% a year |
| Property tax | 1.37% | 0.87% |
| Households that rent | 47% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Texas
- Too close to call. Houston, TX. Renting leads by $2k.
- Renting wins. San Antonio, TX. The difference is $10k.
- Rent. Dallas, TX. Here, renting leads by $20k.
- Rent. Fort Worth, TX. Here, renting leads by $17k.
- Rent. Austin, TX. Here, renting leads by $111k.
- Toss-up. El Paso, TX. Here, it's a toss-up, with buying ahead by $2k.
- Arlington, TX comes out ahead for renting, by $34k in total.
- Corpus Christi, TX favors buying, by $4k in total.
- Plano, TX favors renting, by $105k in total.
- Lubbock, TX is close, with buyers up by $2k in total.
- Renting holds a $20k edge in Laredo, TX.
- Renting holds a $36k edge in Irving, TX.