Cities Where It’s Cheaper to Rent Than Own

Two of the cities where renting is cheaper than owning are located less than 400 miles from each other.

Renters in Louisville, Kentucky, and Milwaukee, Wisconsin pay an average of $310 less per month than the median mortgage costs in those metros, according to a study from loan marketplace LendingTree. ^[1]

On the flip side, Florida is home to four of the top 10 cities where rents are higher than monthly mortgage payments. Residents of Miami and Orlando, Florida would be better off buying than renting, since median mortgage payments run $215 less per month than median rents.

If you’re looking at average-sized homes, buying is usually a better deal. However, if you plan to live in a small home such as a loft or a studio or want a larger abode, renting comes out ahead.

Wondering if you’re better off renting or buying in your metro area? Click or swipe to view the list of cities where it’s cheaper to rent than buy a home.

Louisville, Kentucky

Home of the Louisville Slugger and boxing legend Muhammad Ali, Louisville is the largest city in Kentucky. Residents enjoy cheap rents with the average monthly payment $329 less than a mortgage.

• Median monthly rent payment: $866
• Median monthly mortgage payment: $1,195
• Difference between median rent and mortgage payment (per month): -$329

 Milwaukee, Wisconsin

Situated on Lake Michigan’s western shore, Milwaukee is the largest city in Wisconsin. According to a recent U.S. Census report, it’s the second most densely populated metro area behind Chicago. ^[2]

Buying a home here will cost you a pretty penny compared to rents, with the average monthly mortgage payment clocking in at $301 more than rent.

• Median monthly rent payment: $925
• Median monthly mortgage payment: $1,225
• Difference between median rent and mortgage payment (per month): -$301

Oklahoma City, Oklahoma

The Horse Show Capital of the World, ^[3] Oklahoma City has a lot to offer visitors and residents alike. It is the capital and most populous city of the state of Oklahoma. The city is situated in the middle of an active oil field with oil, gas, petroleum and related products, making up a large sector of the local economy.

Residents of the city enjoy lower rents with the median monthly rent payment a full $300 less than a monthly house payment.

• Median monthly rent payment: $900
• Median monthly mortgage payment: $1,200
• Difference between median rent and mortgage payment (per month): -$300

Boston, Massachusetts

Boston is one of the oldest cities in the U.S., founded in 1630 by English Puritan settlers. It’s the city with the highest population in New England and a major economic and cultural center for the region. ^[4]

Boston is home to many prestigious colleges and universities, attracting residents from all over the U.S. and the world. The median monthly rent payment is $1,417, a full $284 per month less than a mortgage.

• Median monthly rent payment: $1,417
• Median monthly mortgage payment: $1,700
• Difference between median rent and mortgage payment (per month): -$284

San Francisco, California

San Francisco is the home of the Golden Gate Bridge and the birthplace of the United Nations. ^[5] It is also one of the most densely populated cities in the U.S., second behind New York City.

A Debt.com report found it is also one of the most expensive cities for homebuyers, requiring an annual income of $379,000 to put a 5 percent down payment on a home. It’s no wonder it’s cheaper to rent than buy with a difference of $275 per month.

• Median monthly rent payment: $1,856
• Median monthly mortgage payment: $2,130
• Difference between median rent and mortgage payment (per month): -$275

New York City, New York

The Big Apple topped the list of the top five most expensive large cities in the U.S., according to a previous Debt.com report. Another found that New York was one of the cities where credit card debt has shot up in recent years.

It’s no wonder that the cost of living deters many from buying a home. Renting is cheaper by $249 per month with an average rent payment of $1,489.

• Median monthly rent payment: $1,489
• Median monthly mortgage payment: $1,738
• Difference between median rent and mortgage payment (per month): -$249

Providence, Rhode Island

Providence was one of the original thirteen colonies that declared independence in 1776 to become the United States of America. While the city is geographically compact, it is home to 25 diverse neighborhoods.

Median monthly rents are $1,016, which is $226 less than paying a mortgage every month.

• Median monthly rent payment: $1,016
• Median monthly mortgage payment: $1,242
• Difference between median rent and mortgage payment (per month): -$226

Philadelphia, Pennsylvania

The City of Brotherly Love is the largest in Pennsylvania, with a population of just over 1.5 million according to recent U.S. Census data. ^[6] Philadelphia played a key role in the American Revolution and served as the birthplace of the U.S. Constitution.

Renters in Philadelphia enjoy a financial edge with the median rent payment costing $207 less than a mortgage per month.

• Median monthly rent payment: $1,159
• Median monthly mortgage payment: $1,367
• Difference between median rent and mortgage payment (per month): -$207

Raleigh, North Carolina

Raleigh is home to top-tier technology, education, and life science institutions and the second-largest city in North Carolina. According to a Debt.com report, Raleigh, N.C. made the list of the best places to live if you’re trying to save money.

Residents can save even more by opting to rent rather than buy a home, slashing $183 on average per month from their budget over a mortgage payment.

• Median monthly rent payment: $1,200
• Median monthly mortgage payment: $1,383
• Difference between median rent and mortgage payment (per month): -$183

Chicago, Illinois

The Windy City, located on the shore of Lake Michigan, is the third largest in population in the U.S. Chicago is a major worldwide financial center and home to the Chicago Stock Exchange, the Chicago Board Options Exchange, and the Chicago Mercantile Exchange.

A Debt.com report ranked Chicago as one of the cities where credit card debt has increased recently. Residents would do better to rent than taking on mortgage debt, coming out ahead by $182 per month.

• Median monthly rent payment: $1,180
• Median monthly mortgage payment: $1,362
• Difference between median rent and mortgage payment (per month): -$182