Rent vs buy in Troy, MI
In Troy, Michigan, the typical rent is $1,854 /mo and the typical home value is $454,091.
Over 7 years, renting comes out ahead by $89k
Today's mortgage rate and 20% down are paired with Troy's typical rent and home value. No break-even occurs within 30 years.
A clearly labelled opinion, with the calculations shown. The figures are estimates rather than quotes. Shift a number and the stamp shifts with it.
- How far renting is ahead
- $89k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- What owning really costs
- $4,066 /mo year 1, against $1,854 rent
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Troy's typical rent and home value form the basis for the stamp. You can change the result with your rent, price and years.
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Enter your rent, house price and down payment. The stamp updates when those figures change.
In Troy, is it cheaper to rent or buy?
Across 7 years, renting is $88,531 cheaper after counting money returned when you sell. In every year shown, renting's net cost sits below owning's, and owning never catches up within 30 years.
Renting. Cost of owning Net cost, tracked by year so far.
Average rent compared with the mortgage payment in Troy
Rent and the mortgage payment don't tell the whole story at Troy's typical price. Here are all monthly costs for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,854 | All of it, every month |
| Mortgage payment | $2,476 | $2,182 of it is interest in year 1 |
| Property tax | $473 | 1.25% of the value a year |
| Insurance | $105 | Census median for the city |
| Upkeep | $378 | 1% of the value a year |
| Owning, cash out | $3,432 | $294 of it builds equity |
| Lost return on the down payment | $738 | At 8.3% a year, this is the return the cash would earn. |
| Buying costs, spread out | $189 | 3.5% of the price over 7 years |
| True cost of owning | $4,066 | Cash paid out, with the equity portion subtracted and both lines above added. |
Troy's result, explained through the numbers
- Typical home valueZillow ZHVI, September 2026
- $454,091
- Typical rentZillow ZORI, September 2026
- $1,854 /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, Michigan, 1995 to 2025
- 3.8% 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, Troy
- 1.25% of value
- Home insuranceCensus ACS 2020-2024, Troy
- $105 /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 result in Troy?
For each line, the Troy verdict over 7 years changes at that point, while every other figure stays fixed.
Renting comes out ahead when
- Home prices grow at less than 6.2% each year, using 3.8%, Michigan's long-run rate.
- A mortgage rate over 3.74% is maintained.
- A home like this has monthly rent under $2,800 (the local typical figure is $1,854).
- If you move at any time during the next 30 years, owning still can't catch up with these figures.
Buying comes out ahead when
- Home prices rise by more than 6.2% a year.
- You lock in a mortgage rate under 3.74% (today's rate is 7.24%).
- The same home would cost more than $2,800 monthly in rent.
Troy compared with the other 812 cities
| Measure | Troy | Median city |
|---|---|---|
| Typical home value | $454,091 | $422,451 |
| Typical rent | $1,854 /mo | $1,837 /mo |
| Price-to-rent ratio | 20.4 (#314 of 813) | 18.5 |
| Home prices, last 10 years | 5.4% a year | 6.2% a year |
| Rents, last 5 years | 3.2% a year | 4% a year |
| Property tax | 1.25% | 0.87% |
| Households that rent | 27% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More cities in Michigan
- Buy. Detroit, MI. Buying comes out ahead by $72k.
- Rent. Grand Rapids, MI. Renting comes out ahead by $20k.
- Buy. Warren, MI. Buying comes out ahead by $7k.
- Rent. Sterling Heights, MI. Renting comes out ahead by $32k.
- Rent. Ann Arbor, MI. Renting comes out ahead by $124k.
- Toss-up. Lansing, MI. It's close, with buying having a $2k lead.
- Buy. Dearborn, MI. The advantage for buying equals $18k.
- Rent. Livonia, MI. Renting comes out ahead by $26k.
- Rent. Farmington Hills, MI. Renting comes out ahead by $95k.
- Rent. Westland, MI. Renting comes out ahead by $7k.
- Buy. Flint, MI. Buying comes out ahead by $39k.
- Rent. Wyoming, MI. Renting comes out ahead by $23k.