Ann Arbor, MI

Rent vs buy in Ann Arbor

Median home $353,000. A 1 bedrooms rents for $1,588 a month. Ownership is modelled at 20% down, 6.5% APR, property tax and upkeep.

Rent · 1 bedrooms: $1,588; per month
Own the median home: $2,567; P&I, tax, insurance, upkeep
Owning costs extra: $979; per month, same metro

What a purchase actually costs

20% down payment$70,600
Mortgage at 6.5%$1,785
Property tax (1.56% of value)$459/mo · $5,507/yr
Insurance and upkeep (1.1%/yr)$324
Total monthly ownership$2,567

Months of leftover to save the down payment

At $2,014 left over a month, it takes about 36 months (3.0 years) to save $70,600 if every leftover dollar goes to the down payment — which it won't.

Rent is asking rent for a new lease. Home value is the Census ACS median. The mortgage is a 30-year fixed at 6.5% with 20% down — a yardstick, not a quote. Not housing or lending advice.