Rent vs buy in Waterloo, IA
In Waterloo, Iowa, the typical monthly rent is $909 and the typical home value is $146,001.
Renting comes out ahead by $9k over 7 years
Today's mortgage rate, Waterloo's typical rent and home value, plus 20% down. The break-even year is 12.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. After you change a number, the stamp changes.
- Renting leads by
- $9k after 7 years
- Break-even point
- year 12 when owning catches up
- Actual cost of owning
- $1,408 /mo year 1, against $909 rent
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Is renting or buying cheaper in Waterloo?
Over 7 years, renting costs $9,274 less after counting the money returned when you sell. For the first 11 years, renting costs less. In year 12, owning catches up.
Renting. Owning. Net cost by year so far.
Average rent compared with mortgage payment in Waterloo
Rent and mortgage payments aren't the whole story. Here are all monthly costs for year 1 at Waterloo's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $909 | All of it, every month |
| Mortgage payment | $796 | $702 of it is interest in year 1 |
| Property tax | $198 | 1.63% of the value a year |
| Insurance | $88 | Census median for the city |
| Upkeep | $122 | 1% of the value a year |
| Owning, cash out | $1,204 | $94 of it builds equity |
| Lost return on the down payment | $237 | What the cash would earn yearly at 8.3% |
| Buying costs, spread out | $61 | 3.5% of the price over 7 years |
| True cost of owning | $1,408 | Cash out, minus the equity portion, plus both lines above |
The figures behind Waterloo's result
- Typical home value: Zillow ZHVI, September 2026
- $146,001
- Typical rent: Zillow ZORI, September 2026
- $909 each month
- Private mortgage insurance is avoided with 20% down, but the engine leaves it out.
- 20%
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Growth in home pricesFHFA home price index for Iowa, 1995 through 2025
- Each year: 3.7%
- Rent growth: CPI measure of primary residence rent, annual growth, 2006 to 2026
- Each year: 3.5%
- Savings return40% 10-year Treasuries and 60% S&P 500 with dividends, rebalanced yearly, 1928 to 2025
- Each year: 8.3%
- Property tax dataCensus ACS 2020-2024, Waterloo
- 1.63% of the value
- Home insurance dataCensus ACS 2020-2024, Waterloo
- Monthly cost: $88
- Maintenance costsFannie Mae, low end of 1% to 4%
- Each year: 1% of value
- Buying costs: middle of 2% to 5%, from Freddie Mac
- Price share: 3.5%
- Selling costs: Agent commission plus closing costs
- 6% of the price
What would reverse the Waterloo result?
Each line marks a separate point where the 7-year verdict for Waterloo changes. All other factors stay unchanged.
When renting comes out ahead
- Home price growth remains under 4.5% each year. Our rate is 3.7%, Iowa's long-run rate.
- A mortgage rate remains above 6.11%.
- A similar home rents for less than $1,010 each month. The typical rent here is $909.
- Before year 12, you move.
When buying comes out ahead
- Home prices increase faster than 4.5% a year.
- A mortgage rate below 6.11% is locked in. Today's is 7.24%.
- Rent for the same home would exceed $1,010 monthly.
- You remain there for 12 years or more.
The other 812 cities compared with Waterloo
| Measure | Waterloo | Median city |
|---|---|---|
| Typical home value | $146,001 | $422,451 |
| Typical rent | $909 /mo | $1,837 /mo |
| Price-to-rent ratio | 13.4 (#709 of 813) | 18.5 |
| Home prices, last 10 years | 4.3% a year | 6.2% a year |
| Rents, last 5 years | 5.3% a year | 4% a year |
| Property tax | 1.63% | 0.87% |
| Households that rent | 38% | 42% |
Sources: Zillow data for ZHVI and ZORI, Census ACS 2020-2024.
More cities in Iowa
- In Des Moines, IA, renting comes out ahead by $29k.
- In Cedar Rapids, IA, renting comes out ahead by $19k.
- For Davenport, IA, renting wins by $34k. Rent.
- Rent for Sioux City, IA: renting wins by $8k.
- For Ankeny, IA, renting wins by $74k. Rent.
- Renting wins by $29k in Iowa City, IA.
- Renting wins by $71k in West Des Moines, IA.
- For Ames, IA, renting wins by $67k. Rent.
- In Council Bluffs, IA, renting wins by $23k.
- Renting wins by $49k in Dubuque, IA.