Calculator
Rent or buy?
See how your wealth compares after renting or buying in the Twin Cities, year by year, and when buying pulls ahead.
How this calculator works
- Buying: you pay the down payment, Minnesota’s mortgage registry tax (0.23% of the loan, plus 0.01% in Hennepin and Ramsey counties) and other closing costs. Each year you pay principal and interest, property taxes, insurance, HOA dues, mortgage insurance and upkeep. When you sell, you pay the deed tax (0.33%, plus 0.01% in Hennepin and Ramsey) and any commission. Tax rates: Minnesota Department of Revenue.
- Renting: the money you didn’t spend on the down payment and closing costs is invested, and so is any month when renting costs less than owning (and vice versa for the buyer).
- Home price growth: Federal Housing Finance Agency (FHFA) House Price Index, all-transactions, not seasonally adjusted, Minneapolis-St. Paul-Bloomington, MN-WI metro area, through 2026-Q2.
- Property taxes: each city’s typical effective rate. Source: US Census Bureau, American Community Survey 2020-2024 5-year estimates: B25103 (median real estate taxes paid, owner-occupied homes) and B25077 (median home value). Rate = median taxes ÷ median value.
- Mortgage rate: Freddie Mac Primary Mortgage Market Survey (PMMS), weekly national averages.
Common questions
Is it better to rent or buy in the Twin Cities?
It depends mostly on how long you’ll stay. Buying has up-front and selling costs that take several years to earn back through equity and price growth. This calculator shows the year when buying pulls ahead under your assumptions.
How fast have Twin Cities home prices risen?
The FHFA House Price Index for the Minneapolis-St. Paul metro rose about 4.2% a year over the last 30 years, 2.4% a year over 20 years (a period that includes the 2008 downturn) and 5.6% a year over 10 years, through 2026-Q2. Past growth doesn’t guarantee future growth.
What does this calculator leave out?
Income tax effects such as the mortgage interest deduction, renter’s insurance, moving costs and changes in your rate or rent beyond the growth you enter. Treat it as a comparison, not a forecast.
More: How much house can I afford? · Buying with us · Twin Cities housing data · All calculators
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We’ll look at your timeline, the neighborhoods you like and what homes there really cost, and give you a straight answer, even if it’s “keep renting for now.”
Prefer to talk? Call (612) 843-9620.