Mankato, MN

Rent vs buy in Mankato

Median home $255,000. A 1 bedrooms rents for $965 a month. Ownership is modelled at 20% down, 6.5% APR, property tax and upkeep.

Rent · 1 bedrooms: $965; per month
Own the median home: $1,742; P&I, tax, insurance, upkeep
Owning costs extra: $777; per month, same metro

What a purchase actually costs

20% down payment$51,000
Mortgage at 6.5%$1,289
Property tax (1.03% of value)$219/mo · $2,627/yr
Insurance and upkeep (1.1%/yr)$234
Total monthly ownership$1,742

Months of leftover to save the down payment

At $2,314 left over a month, it takes about 23 months (1.9 years) to save $51,000 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.