Providence, RI

Rent vs buy in Providence

Median home $385,900. A 1 bedrooms rents for $1,751 a month. Ownership is modelled at 20% down, 6.5% APR, property tax and upkeep.

Rent · 1 bedrooms: $1,751; per month
Own the median home: $2,723; P&I, tax, insurance, upkeep
Owning costs extra: $972; per month, same metro

What a purchase actually costs

20% down payment$77,180
Mortgage at 6.5%$1,951
Property tax (1.30% of value)$418/mo · $5,017/yr
Insurance and upkeep (1.1%/yr)$354
Total monthly ownership$2,723

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 $2,083 left over a month, it takes about 38 months (3.2 years) to save $77,180 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.