Do you currently pay rent? Are you worried about jumping into homeownership because you think that paying a mortgage will be much more expensive than paying rent?
Depending on where you live, the down payment amount you pay, and the interest rate you lock in, you could actually be paying a lot less in mortgage payments compared to monthly rent payments. This article will show you how rent might be more expensive than what landlords are paying in mortgage payments.
In many of the 50 largest cities across the U.S., monthly rent is more than the mortgage payment for single-family homes. In several cases, much more.
Global answering service and chat support company Moneypenny compiled data from Zillow on median rent and mortgage payments from May 2021 through May 2026.
To calculate estimated monthly mortgage payments, Moneypenny used median home sale prices from the same period and across the same major cities, applying more current national-average mortgage assumptions for 2026: a 30-year fixed mortgage rate averaging approximately 6.7% with a 5%–6% down payment.
Once the two figures — median monthly rent and median monthly mortgage — were calculated for each city, they were compared side-by-side. The data may surprise you.
In just seven of the 50 cities analyzed, tenants pay less rent than the owner’s mortgage payment each month. In 28 of the cities — well over half, tenants are paying more than 150% of their home’s mortgage.
Let’s take a look at what you would be paying in monthly mortgage payments compared to rent in different states across the Pacific Northwest. This will give you an idea of how much you might actually be paying extra in rent compared to what you would be paying in mortgage payments.
For comparison purposes, we will be using the average of a 10% down payment and today’s current mortgage interest rate of 6.36% (as of May 14, 2026) for a 30-year fixed-rate mortgage.
The mortgage payment figures in this article are based on a simplified set of assumptions so the comparisons can be made consistently across locations. In practice, a monthly mortgage payment can vary depending on the loan amount, the down payment used, and the interest rate applied.
It is also important to remember that a mortgage payment comparison does not always capture every housing-related cost. Depending on the scenario, total homeownership costs may include items beyond principal and interest, while rent payments may bundle housing costs differently. Because of that, these side-by-side figures are best viewed as a general comparison rather than a precise estimate of every monthly expense.
In Washington state, the average home value is currently $611,301. The market in Washington State is very hot right now. Home values are up 1.0% over the past year. The average rent for an apartment in the state is $2,027. So, how does that compare to mortgage payments?
Using the parameters mentioned above, the monthly mortgage payment for an averaged-price home statewide would be $3,356. As you can see, that’s about $1,329 more than what you would pay in an average rental.
Let’s take a look at payments in various cities across the state. Keep in mind that the mortgage payment amounts are based on a 10% down payment applied and a mortgage interest rate of 6.36%:
Rent is about $1,350–$1,500 lower than mortgage payments.
Rent is about $1,100 lower than mortgage payments.
Rent is about $2,300 lower than mortgage payments.
In Oregon, the average home value sits at approximately $503,000. The Oregon housing market has remained relatively stable, with home values showing modest year-over-year changes compared to the sharper declines seen previously. The median rent in the state is approximately $1,850. Let’s see how that compares to mortgage payments.
Using updated 2026 assumptions (30-year fixed mortgage at approximately 6.7% with 5% down), the estimated monthly mortgage payment for an average-priced home across Oregon would be about $3,150–$3,300.
As such, you would be paying approximately $1,300–$1,450 more per month compared to renting.
Renting costs about $1,400–$1,550 less per month than paying a mortgage in Portland.
Rent is about $1,250–$1,350 less than mortgage payments in Eugene.
You could save approximately $900–$1,050 per month by renting rather than paying a mortgage in Salem.
In Idaho, the average home value sits at approximately $475,000. The Idaho housing market remains active, though price growth has moderated compared to previous years. The average rent for an apartment in the state is approximately $1,750.
Using updated 2026 assumptions (30-year fixed mortgage at approximately 6.7% with 5% down), the estimated monthly mortgage payment for an average-priced home across Idaho would be about $2,950–$3,100.
As such, you would be paying approximately $1,200–$1,350 more per month compared to renting.
Renting in Boise would cost about $1,600–$1,750 less per month than paying a mortgage.
Rent is approximately $1,100–$1,250 lower than mortgage payments in Idaho Falls.
Renting in Pocatello would save approximately $850–$950 per month compared to paying a mortgage.
The average home value in Colorado is approximately $590,000. The Colorado housing market has remained relatively balanced, with some areas seeing modest growth while others continue adjusting after previous price surges. The average rent across all property types in the state is approximately $2,100.
Using updated 2026 assumptions (30-year fixed mortgage at approximately 6.7% with 5% down), the estimated monthly mortgage payment for an average-priced home in Colorado would be about $3,650–$3,800.
As such, you would be paying approximately $1,550–$1,700 more per month compared to renting.
Renting in Denver would cost approximately $1,650–$1,800 less per month than paying a mortgage.
Rent in Colorado Springs is approximately $1,150–$1,300 lower than mortgage payments.
In California, the average home value sits at approximately $786,000. The California housing market remains one of the most expensive in the country, although price growth has moderated in some regions compared to previous years. The average rent across the state is approximately $2,800.
Using updated 2026 assumptions (30-year fixed mortgage at approximately 6.7% with 5% down), the estimated monthly mortgage payment for an average-priced home across California would be about $4,850–$5,050.
As such, you would be paying approximately $2,050–$2,250 more per month compared to renting.
Renting in Los Angeles would cost approximately $3,100–$3,350 less per month than paying a mortgage.
Rent in San Diego is approximately $3,250–$3,500 lower than mortgage payments.
Renting in Sacramento would save approximately $1,450–$1,600 per month compared to paying a mortgage.
Rent-versus-buy comparisons can be useful for illustrating broad affordability differences, but they have limits. They are based on selected assumptions and point-in-time figures, so they may not reflect the exact costs or financial situation of every renter or buyer.
These comparisons should be treated as a starting point for evaluation rather than a final answer. Individual results can differ based on financing terms, housing choices, and how monthly expenses are structured in a specific rental or ownership situation.
While it makes perfect sense that rent prices in hot real estate markets are higher, some may still be surprised by the disparity between rental amounts and monthly mortgage payments. However, it’s important to note that even in the cities with the biggest gap, landlords are not necessarily pocketing the excess and enjoying a nice profit. While it’s certainly possible that they may be, homeowners are more likely putting some of that money back into the house in the form of improvements and maintenance, as well as setting some of it aside for large emergency repairs.
There are certain expenses related to owning a property. Maintenance, repairs, property taxes, and other miscellaneous expenses apply to owning a home. But if you think about any money put back into a home for improvements, you can actually increase the value of your home if you spend the money wisely. Certain improvements and upgrades came in a high ROI, such as kitchen makeovers, bathroom remodels, new flooring, and updated landscaping, for instance. Choosing the right type of improvement to make can prove to be very beneficial when it comes to a quick appreciation in value and an increase in home equity.
If you are in the market for a new home or interested in refinancing your current property, be sure to contact your trusted home mortgage professional to discuss financing options.
Are you ready to leap into homeownership? If so, Sammamish Mortgage can help. We serve clients across Washington, Idaho, Colorado, Oregon, and California. Since 1992, we’ve been offering multiple mortgage programs with flexible qualification criteria to borrowers across the Pacific Northwest, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Visit our website to get an instant rate quote or to use our online mortgage calculator. Or, contact us if you’re ready to get pre-approved for a mortgage.
In the examples provided, average rent in Washington State is lower than the estimated monthly mortgage payment for an average-priced home. The gap depends on home price, down payment, and interest rate.
A mortgage payment can be higher because it is based on current home prices, interest rates, and loan terms. In higher-cost markets, rising prices and borrowing costs can push monthly payments above local rent levels.
No. A simple rent-versus-mortgage comparison may not include property taxes, homeowners insurance, maintenance, repairs, or other housing-related expenses.
The examples use simplified assumptions such as a 30-year fixed-rate mortgage, a stated down payment, and a current interest rate. Actual payments vary by borrower, loan program, taxes, insurance, and credit profile.
Yes. In the Oregon examples, estimated mortgage payments are higher than average rent in the statewide and city comparisons shown.
Yes. In the Idaho examples, average rent is lower than the estimated monthly mortgage payment in the statewide and city comparisons discussed.
The Colorado examples show estimated mortgage payments above average rent in the state and in the cities highlighted. The exact difference varies by location and home price.
The California examples show a much larger gap in many areas, with estimated mortgage payments significantly higher than average rent in the statewide and city comparisons provided.
Yes. Renting can make sense if the monthly cost is lower, flexibility is important, or a buyer is not ready for maintenance, repairs, and other ownership responsibilities.
A buyer should also consider the down payment, closing costs, property taxes, insurance, maintenance, repairs, HOA dues if applicable, and how long they plan to stay in the home.
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