Rent vs buy in Somerville, MA
The typical rent is $3,428 /mo and a typical home costs $920,007 in Somerville, Massachusetts.
Renting comes out ahead by $65k across 7 years.
Using Somerville's typical rent and home value, plus 20% down and today's mortgage rate. The break-even point is year 12.
Our opinion is clearly labeled, and we show the math. These are estimates, not quotes. Changing a number changes the stamp too.
- Renting is ahead by
- $65k after 7 years
- Break-even point
- Year 12 when owning catches up
- The true cost of ownership
- $7,721 /mo year 1, against $3,428 rent
Change my numbers
Somerville's typical rent and home value are what the stamp uses. Your rent, price and time period can flip the result.
Do your numbers differ from the city's?
Enter the rent, price and down payment amounts yourself. Those numbers change the stamp.
Is renting or buying cheaper in Somerville?
After counting the money returned when you sell, renting costs $64,826 less over 7 years. For the first 11 years, renting costs less. In year 12, owning catches up.
Renting. Owning. Net cost through each year.
Mortgage payment vs average rent in Somerville
Rent and mortgage payments don't tell the whole story. At Somerville's typical price, these are all monthly costs for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $3,428 | All of it, every month |
| Mortgage payment | $5,016 | $4,421 of it is interest in year 1 |
| Property tax | $521 | 0.68% of the value a year |
| Insurance | $133 | Census median for the city |
| Upkeep | $767 | 1% of the value a year |
| Owning, cash out | $6,437 | $595 of it builds equity |
| Lost return on the down payment | $1,495 | At 8.3% a year, what the cash would earn |
| Buying costs, spread out | $383 | 3.5% of the price over 7 years |
| True cost of owning | $7,721 | Cash out minus the equity portion, plus the two lines above |
The Somerville numbers behind the verdict
- Typical home valueZillow ZHVI, September 2026
- $920,007
- Typical rentZillow ZORI, September 2026
- $3,428 /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, Massachusetts, 1995 to 2025
- 5.1% 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, Somerville
- 0.68% of value
- Home insuranceCensus ACS 2020-2024, Somerville
- $133 /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 Somerville result?
Each line marks the threshold that changes the 7-year verdict in Somerville. All other factors stay as they are.
When renting is the better choice
- For home prices with a yearly growth rate below 5.9%, we use 5.1% as Massachusetts's long-run rate in the calculation.
- The mortgage rate remains above 5.99%.
- For a home like this, monthly rent is under $4,120; here, the typical amount is $3,428.
- Your move happens before year 12.
When buying is the better choice
- Home values rise by more than 5.9% each year.
- You secure a mortgage rate under 5.99% (today's is 7.24%).
- Monthly rent for the same home would exceed $4,120.
- You remain in the home for 12 years or more.
How Somerville compares with the other 812 cities
| Measure | Somerville | Median city |
|---|---|---|
| Typical home value | $920,007 | $422,451 |
| Typical rent | $3,428 /mo | $1,837 /mo |
| Price-to-rent ratio | 22.4 (#228 of 813) | 18.5 |
| Home prices, last 10 years | 3.4% a year | 6.2% a year |
| Rents, last 5 years | 4.8% a year | 4% a year |
| Property tax | 0.68% | 0.87% |
| Households that rent | 66% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Massachusetts cities besides Somerville
- Rent. Renting wins by $10k in Boston, MA.
- Rent. Renting wins by $8k in Worcester, MA.
- Buy. Buying wins by $18k in Springfield, MA.
- Rent. Renting wins by $83k in Cambridge, MA.
- Rent. Renting wins by $9k in Lowell, MA.
- Rent. Renting wins by $19k in Brockton, MA.
- Rent. Renting wins by $45k in Lynn, MA.
- Rent. Renting wins by $51k in Quincy, MA.
- Rent. Renting wins by $40k in New Bedford, MA.
- Rent. Renting wins by $29k in Fall River, MA.
- Rent. Renting wins by $317k in Newton, MA.
- Toss-up. Renting leads by $2k in Lawrence, MA.