Rent vs. Buy Calculator in Chicago (2026)
Is it better to rent or buy a home in Chicago? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$304,000
80m² · $3,800/m²
Down Payment
$60,800
20% of purchase price
Monthly Mortgage
$1,582
6.1% rate · 25yr term
Monthly Rent
$2,300
City centre
📅 Break-even point: Year 3
Buying becomes cheaper than renting after 3 years in Chicago, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately $72,295 vs renting.
Cumulative Cost Comparison — Chicago
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $29,421 | $22,599 | $311,600 | 🔴 Rent |
| 2 | $47,745 | $45,676 | $319,390 | 🔴 Rent |
| 3 | $65,590 | $69,232 | $327,375 | 🟢 Buy |
| 4 | $82,932 | $93,265 | $335,559 | 🟢 Buy |
| 5 | $99,750 | $117,774 | $343,948 | 🟢 Buy |
| 6 | $116,016 | $142,756 | $352,547 | 🟢 Buy |
| 7 | $131,704 | $168,207 | $361,360 | 🟢 Buy |
| 8 | $146,787 | $194,121 | $370,394 | 🟢 Buy |
| 9 | $161,234 | $220,492 | $379,654 | 🟢 Buy |
| 10 | $175,014 | $247,310 | $389,146 | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: $1,582
Maintenance: $405
Property Tax: $567
Total Monthly: $2,554
Does not include down payment of $60,800
Renting
Monthly Rent: $2,300
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $2,300
Rent increases 3%/yr in projection
Can you afford to buy in Chicago?
Monthly net income: $5,244
Monthly mortgage: $1,582
Mortgage-to-income ratio: 30.2%
🟡 Manageable but tight
Down payment savings needed: $71,440
At 20% savings rate, years to save: 5.7 years
Notes & Assumptions
This calculator uses the following assumptions for Chicago in 2026: property price $3,800/m² × 80m², mortgage rate 6.1% over 25 years, 20% down payment, transaction costs 3.5%, annual maintenance 1.6%, property appreciation 2.5%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. Cook County property taxes ~2% of value — among the highest big-city rates in the US. 30yr fixed ~6.1%.
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Chicago in 2026?
Based on 2026 data, buying a home in Chicago typically becomes financially advantageous after 3 years, once property appreciation and equity are factored in. With a mortgage rate of 6.1% and estimated annual appreciation of 2.5%, buying makes sense for long-term residents.
How much do you need to earn to buy in Chicago?
A typical 80m² apartment in Chicago costs approximately $304,000 in 2026. With a 20% down payment of $60,800, the monthly mortgage is $1,582. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $63,274 per year to comfortably afford this purchase in Chicago.
What is the price-to-rent ratio in Chicago?
The price-to-rent ratio in Chicago is approximately 17x in 2026 — meaning it takes 17 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Chicago's ratio of 17 suggests buying can be advantageous for stays of 7+ years.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.