Rent vs. Buy Calculator in Miami (2026)
Is it better to rent or buy a home in Miami? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
$525,000
70m² · $7,500/m²
Down Payment
$105,000
20% of purchase price
Monthly Mortgage
$2,732
6.1% rate · 25yr term
Monthly Rent
$2,800
City centre
📅 Break-even point: Year 2
Buying becomes cheaper than renting after 2 years in Miami, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately $226,006 vs renting.
Cumulative Cost Comparison — Miami
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | $25,541 | $25,331 | $551,250 | 🔴 Rent |
| 2 | $36,183 | $51,092 | $578,813 | 🟢 Buy |
| 3 | $44,956 | $77,271 | $607,753 | 🟢 Buy |
| 4 | $51,759 | $103,857 | $638,141 | 🟢 Buy |
| 5 | $56,489 | $130,836 | $670,048 | 🟢 Buy |
| 6 | $59,034 | $158,190 | $703,550 | 🟢 Buy |
| 7 | $59,278 | $185,901 | $738,728 | 🟢 Buy |
| 8 | $57,097 | $213,947 | $775,664 | 🟢 Buy |
| 9 | $52,362 | $242,303 | $814,447 | 🟢 Buy |
| 10 | $44,936 | $270,942 | $855,170 | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: $2,732
Maintenance: $788
Property Tax: $317
Total Monthly: $3,836
Does not include down payment of $105,000
Renting
Monthly Rent: $2,800
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: $2,800
Rent increases 3%/yr in projection
Can you afford to buy in Miami?
Monthly net income: $5,501
Monthly mortgage: $2,732
Mortgage-to-income ratio: 49.7%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: $118,125
At 20% savings rate, years to save: 8.9 years
Notes & Assumptions
This calculator uses the following assumptions for Miami in 2026: property price $7,500/m² × 70m², mortgage rate 6.1% over 25 years, 20% down payment, transaction costs 2.5%, annual maintenance 1.8%, property appreciation 5.0%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. No state income tax. Hurricane insurance adds $2,000-4,000/yr. 30yr fixed ~6.1% (Bankrate Mar 2026).
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Miami in 2026?
Based on 2026 data, buying a home in Miami typically becomes financially advantageous after 2 years, once property appreciation and equity are factored in. With a mortgage rate of 6.1% and estimated annual appreciation of 5.0%, buying makes sense for long-term residents.
How much do you need to earn to buy in Miami?
A typical 70m² apartment in Miami costs approximately $525,000 in 2026. With a 20% down payment of $105,000, the monthly mortgage is $2,732. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least $109,272 per year to comfortably afford this purchase in Miami.
What is the price-to-rent ratio in Miami?
The price-to-rent ratio in Miami is approximately 19x in 2026 — meaning it takes 19 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Miami's ratio of 19 suggests the decision depends heavily on your time horizon and expected appreciation.
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.