Rent vs buy in South Bend, IN
In South Bend, Indiana, the typical rent is $1,269 /mo and the typical home is $198,280.
Buying comes out ahead by $4k over 7 years
The calculation applies 20% down and today's mortgage rate. Its rent and home value figures come from South Bend's typical figures. The break-even point falls in year 7.
Opinion, clearly labeled, with the math shown. These figures are estimates, not quotes. Change any number, and the stamp changes with it.
- How far owning leads
- $4k after 7 years
- Break-even point
- year 7 when owning catches up
- Real cost of owning
- $1,766 /mo year 1, against $1,269 rent
Change my numbers
South Bend's typical figures provide the stamp's rent and home value inputs. Changing your rent, price and number of years could flip the result.
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In South Bend, is renting or buying cheaper?
Over 7 years, buying costs $3,995 less once you count the money you get back when you sell. The net cost of owning falls below renting in year 7 and remains lower.
Rent. Home ownership. Net cost so far, grouped by year.
Comparing average rent and mortgage payment in South Bend
At South Bend's typical price, monthly costs in year 1 include more than rent and the mortgage. Here are all of them.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,269 | All of it, every month |
| Mortgage payment | $1,081 | $953 of it is interest in year 1 |
| Property tax | $157 | 0.95% of the value a year |
| Insurance | $86 | Census median for the city |
| Upkeep | $165 | 1% of the value a year |
| Owning, cash out | $1,489 | $128 of it builds equity |
| Lost return on the down payment | $322 | Annual earnings on the cash at 8.3% |
| Buying costs, spread out | $83 | 3.5% of the price over 7 years |
| True cost of owning | $1,766 | Cash out minus the equity part, plus both lines above |
Numbers behind South Bend's verdict
- Typical home valueZillow ZHVI, September 2026
- $198,280
- Typical rentZillow ZORI, September 2026
- $1,269 /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, Indiana, 1995 to 2025
- 3.7% 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, South Bend
- 0.95% of value
- Home insuranceCensus ACS 2020-2024, South Bend
- $86 /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 flip the South Bend result?
Each line marks the point where the verdict for South Bend over 7 years changes. Everything else stays the same.
When renting comes out ahead
- We base this on 3.7%, Indiana's long-run rate, while home prices grow below 3.4% annually.
- The rate for a mortgage stays above 7.60%.
- A similar home has a monthly rent below $1,230 (typical here: $1,269).
- Moving happens before year 7.
Buying comes out ahead if
- Home prices rise by more than 3.4% a year.
- You lock in a rate below 7.60% for your mortgage (today's is 7.24%).
- If you rent that same home, it would cost more than $1,230 each month.
- Your stay lasts 7 years or more.
South Bend compared with the other 812 cities
| Measure | South Bend | Median city |
|---|---|---|
| Typical home value | $198,280 | $422,451 |
| Typical rent | $1,269 /mo | $1,837 /mo |
| Price-to-rent ratio | 13.0 (#725 of 813) | 18.5 |
| Home prices, last 10 years | 9.1% a year | 6.2% a year |
| Rents, last 5 years | 5.9% a year | 4% a year |
| Property tax | 0.95% | 0.87% |
| Households that rent | 40% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Indiana's other cities
- Toss-up. Indianapolis, IN. Renting leads by $2k in a toss-up.
- Rent. Fort Wayne, IN. Renting leads by $20k.
- Rent. Evansville, IN. Renting leads by $17k.
- Rent. Fishers, IN. Renting leads by $70k.
- Rent. Carmel, IN. Renting leads by $143k.
- Rent. Bloomington, IN. Renting leads by $9k.
- Buy. Hammond, IN. Buying leads by $37k.
- Rent. Noblesville, IN. Renting leads by $62k.
- Rent. Lafayette, IN. Renting leads by $24k.
- Rent. Greenwood, IN. Renting leads by $33k.
- Buy. Gary, IN. Buying leads by $72k.
- Buy. Muncie, IN. Buying leads by $8k.