Renting vs. Owning a Home: The Cost Difference in Every State
- - Renting vs. Owning a Home: The Cost Difference in Every State
Heather TaylorDecember 30, 2025 at 5:38 PM
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andresr / iStock.com
Most personal finance experts agree it’s better to own a home than rent, especially if you want to build wealth over time. Depending where you live, however, a new original research study from GOBankingRates reveals renting may be more cost-effective compared to buying a home.
For this study, GOBankingRates used the Zillow Home Value Index to find the average single-family home value across all U.S. cities. These values were averaged for each state, and the monthly mortgage rate was calculated using a 20% down payment and the current national average 30-year interest rate. We utilized Apartments.com to source the rental cost averages and compare these costs to each state’s mortgage to determine which states are better for owning versus renting homes.
Manjagui / Getty Images/iStockphotoKey Findings -
New York surprised as one of six states where it’s cheaper to pay for a mortgage than rent. The Big Apple’s annual rent costs are $35,928 and an annual mortgage payment is $28,404, amounting to a cost difference of $7,524.
Illinois, Louisiana, Mississippi, Pennsylvania and West Virginia made up the remaining six states where mortgage payments cost less than rent. Homeowners save $3,240 (Illinois), $1,908 (Pennsylvania), $1,704 (West Virginia), $1,020 (Mississippi) and $372 (Louisiana) annually.
Hawaii renters save more than $30,000 annually. The Aloha State’s annual rent costs are $21,780 while annual mortgage payments amount to an eye-popping $56,364.
See the cost difference for renting versus owning a home across America, organized in alphabetical state order. Also, find out how much a three-bedroom home costs to own in every state.
Learn More: GOBankingRates Original Research Center
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DenisTangneyJr / iStock.comAlabama -
Average monthly rent: $1,051
Monthly mortgage payment: $1,120
More affordable to rent or own? Rent
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Rocky Grimes / Shutterstock.comAlaska -
Average monthly rent: $1,306
Monthly mortgage payment: $1,933
More affordable to rent or own? Rent
DenisTangneyJr / Getty Images/iStockphotoArizona -
Average monthly rent: $1,327
Monthly mortgage payment: $2,100
More affordable to rent or own? Rent
Davel5957 / Getty ImagesArkansas -
Average monthly rent: $959
Monthly mortgage payment: $1,058
More affordable to rent or own? Rent
zorazhuang / iStock/Getty ImagesCalifornia -
Average monthly rent: $2,207
Monthly mortgage payment: $3,839
More affordable to rent or own? Rent
Muhammad Zulkifal / Getty Images/iStockphotoColorado -
Average monthly rent: $1,564
Monthly mortgage payment: $2,688
More affordable to rent or own? Rent
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Sean Pavone / Getty Images/iStockphotoConnecticut -
Average monthly rent: $1,868
Monthly mortgage payment: $2,220
More affordable to rent or own? Rent
DenisTangneyJr / Getty ImagesDelaware -
Average monthly rent: $1,516
Monthly mortgage payment: $1,948
More affordable to rent or own? Rent
Wirestock / iStock.comFlorida -
Average monthly rent: $1,678
Monthly mortgage payment: $1,937
More affordable to rent or own? Rent
Jacob Boomsma / Getty Images/iStockphotoGeorgia -
Average monthly rent: $1,425
Monthly mortgage payment: $1,626
More affordable to rent or own? Rent
Art Wager / Getty ImagesHawaii -
Average monthly rent: $1,815
Monthly mortgage payment: $4,697
More affordable to rent or own? Rent
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christiannafzger / Getty Images/iStockphotoIdaho -
Average monthly rent: $1,366
Monthly mortgage payment: $2,277
More affordable to rent or own? Rent
Page Light Studios / Getty ImagesIllinois -
Average monthly rent: $1,665
Monthly mortgage payment: $1,395
More affordable to rent or own? Own
Ultima_Gaina / Getty Images/iStockphotoIndiana -
Average monthly rent: $1,109
Monthly mortgage payment: $1,222
More affordable to rent or own? Rent
Christa Boaz / Getty ImagesIowa -
Average monthly rent: $962
Monthly mortgage payment: $1,132
More affordable to rent or own? Rent
TriggerPhoto / Getty Images/iStockphotoKansas -
Average monthly rent: $1,073
Monthly mortgage payment: $1,166
More affordable to rent or own? Rent
See Next: 12 Midwest Cities Where Rent Costs 30% or Less of a Middle-Class Income
volgariver / Getty Images/iStockphotoKentucky -
Average monthly rent: $1,070
Monthly mortgage payment: $1,107
More affordable to rent or own? Rent
Larry Gibson / Getty Images/iStockphotoLouisiana -
Average monthly rent: $1,054
Monthly mortgage payment: $1,023
More affordable to rent or own? Own
DenisTangneyJr / Getty Images/iStockphotoMaine -
Average monthly rent: $1,699
Monthly mortgage payment: $1,945
More affordable to rent or own? Rent
DenisTangneyJr / Getty Images/iStockphotoMaryland -
Average monthly rent: $1,667
Monthly mortgage payment: $2,156
More affordable to rent or own? Rent
DenisTangneyJr / Getty Images/iStockphotoMassachusetts -
Average monthly rent: $2,513
Monthly mortgage payment: $3,265
More affordable to rent or own? Rent
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Michigan -
Average monthly rent: $1,140
Monthly mortgage payment: $1,225
More affordable to rent or own? Rent
Jacob Boomsma / Getty Images/iStockphotoMinnesota -
Average monthly rent: $1,330
Monthly mortgage payment: $1,701
More affordable to rent or own? Rent
SeanPavonePhoto / Getty Images/iStockphotoMississippi -
Average monthly rent: $994
Monthly mortgage payment: $909
More affordable to rent or own? Own
DenisTangneyJr / Getty Images/iStockphotoMissouri -
Average monthly rent: $1,124
Monthly mortgage payment: $1,258
More affordable to rent or own? Rent
DianeBentleyRaymond / Getty ImagesMontana -
Average monthly rent: $1,413
Monthly mortgage payment: $2,249
More affordable to rent or own? Rent
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marekuliasz / iStock.comNebraska -
Average monthly rent: $1,097
Monthly mortgage payment: $1,322
More affordable to rent or own? Rent
lucky-photographer / Getty ImagesNevada -
Average monthly rent: $1,325
Monthly mortgage payment: $2,260
More affordable to rent or own? Rent
DenisTangneyJr / iStock.comNew Hampshire -
Average monthly rent: $1,852
Monthly mortgage payment: $2,524
More affordable to rent or own? Rent
DenisTangneyJr / Getty Images/iStockphotoNew Jersey -
Average monthly rent: $2,087
Monthly mortgage payment: $2,833
More affordable to rent or own? Rent
benedek / Getty Images/iStockphotoNew Mexico -
Average monthly rent: $1,175
Monthly mortgage payment: $1,517
More affordable to rent or own? Rent
Explore Next: 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years
FilippoBacci / Getty Images/iStockphotoNew York -
Average monthly rent: $2,994
Monthly mortgage payment: $2,367
More affordable to rent or own? Own
Kruck20 / iStock.comNorth Carolina -
Average monthly rent: $1,344
Monthly mortgage payment: $1,627
More affordable to rent or own? Rent
DenisTangneyJr / Getty ImagesNorth Dakota -
Average monthly rent: $968
Monthly mortgage payment: $1,388
More affordable to rent or own? Rent
©iStock.comOhio -
Average monthly rent: $1,073
Monthly mortgage payment: $1,178
More affordable to rent or own? Rent
JTSorrell / Getty ImagesOklahoma -
Average monthly rent: $907
Monthly mortgage payment: $1,057
More affordable to rent or own? Rent
Learn More: The Cheapest Place To Buy a Home in Every State
DaveAlan / Getty ImagesOregon -
Average monthly rent: $1,472
Monthly mortgage payment: $2,456
More affordable to rent or own? Rent
Sean Pavone / Getty Images/iStockphotoPennsylvania -
Average monthly rent: $1,525
Monthly mortgage payment: $1,366
More affordable to rent or own? Own
gregobagel / Getty Images/iStockphotoRhode Island -
Average monthly rent: $1,833
Monthly mortgage payment: $2,436
More affordable to rent or own? Rent
digidreamgrafix / Getty Images/iStockphotoSouth Carolina -
Average monthly rent: $1,380
Monthly mortgage payment: $1,478
More affordable to rent or own? Rent
DenisTangneyJr / iStock.comSouth Dakota -
Average monthly rent: $979
Monthly mortgage payment: $1,531
More affordable to rent or own? Rent
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Sean Pavone / iStock.comTennessee -
Average monthly rent: $1,350
Monthly mortgage payment: $1,603
More affordable to rent or own? Rent
RoschetzkyIstockPhoto / Getty ImagesTexas -
Average monthly rent: $1,243
Monthly mortgage payment: $1,461
More affordable to rent or own? Rent
f11photo / Getty Images/iStockphotoUtah -
Average monthly rent: $1,387
Monthly mortgage payment: $2,646
More affordable to rent or own? Rent
DenisTangneyJr / Getty ImagesVermont -
Average monthly rent: $1,838
Monthly mortgage payment: $1,908
More affordable to rent or own? Rent
DenisTangneyJr / Getty Images/iStockphotoVirginia -
Average monthly rent: $1,774
Monthly mortgage payment: $2,005
More affordable to rent or own? Rent
That’s Interesting: 10 Best Places To Buy a Short-Term Rental Property To Earn Passive Income in 2025
Pgiam / Getty ImagesWashington -
Average monthly rent: $1,830
Monthly mortgage payment: $2,966
More affordable to rent or own? Rent
DenisTangneyJr / Getty Images/iStockphotoWest Virginia -
Average monthly rent: $970
Monthly mortgage payment: $828
More affordable to rent or own? Own
Ultima_Gaina / Getty ImagesWisconsin -
Average monthly rent: $1,243
Monthly mortgage payment: $1,586
More affordable to rent or own? Rent
stockphoto52 / Getty Images/iStockphotoWyoming -
Average monthly rent: $1,161
Monthly mortgage payment: $1,752
More affordable to rent or own? Rent
View more original studies and surveys in the GOBankingRates original research center.
Methodology: To find the cost of renting versus owning a home in every state, GOBankingRates analyzed the Zillow Home Value Index across all U.S. cities for single-family homes and averaged the values for each state. Using a 20% down payment and the current national average 30-year mortgage rate (from the Federal Reserve Economic Data), the monthly mortgage rate was calculated. The rental cost averages were sourced from Apartments.com for each state. The rental cost was compared to the mortgage for each state to find which states are better for owning versus renting a home. All data was collected on Dec. 10, 2025.
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This article originally appeared on GOBankingRates.com: Renting vs. Owning a Home: The Cost Difference in Every State
Source: “AOL Money”
