Birmingham, AL

Rent vs buy in Birmingham

Median home $226,200. A 1 bedrooms rents for $1,125 a month. Ownership is modelled at 20% down, 6.5% APR, property tax and upkeep.

Rent · 1 bedrooms: $1,125; per month
Own the median home: $1,428; P&I, tax, insurance, upkeep
Owning costs extra: $303; per month, same metro

What a purchase actually costs

20% down payment$45,240
Mortgage at 6.5%$1,144
Property tax (0.41% of value)$77/mo · $927/yr
Insurance and upkeep (1.1%/yr)$207
Total monthly ownership$1,428

Census ACS 2023: 45.9% of renter households in this metro put 30% or more of income toward rent.

Months of leftover to save the down payment

At $2,346 left over a month, it takes about 20 months (1.7 years) to save $45,240 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.