NORTHERN VIRGINIA RENT VS. BUY

Would renting or buying leave you in the stronger position?

Let’s compare the two paths using the home you would actually buy, the home you would actually rent, and how long you may stay.

Just calculate it Walk me through it

By Abraham Walker · Northern Virginia real estate agent and Fairfax County homeowner

QUICK CALCULATOR

Start with the five numbers that move the answer most.

These fields use the same calculation engine as the guided worksheet. You can fine-tune taxes, insurance, maintenance, and future assumptions afterward.

Monthly rent

Purchase price

Down payment

Mortgage rate

How long might you stay?

Under the planning assumptionsCalculating…

See the full breakdown Fine-tune assumptions

THE QUESTION WE ARE REALLY ANSWERING

This is not rent versus a mortgage payment.

A mortgage payment includes principal that can become equity. Owning also brings taxes, insurance, maintenance, and the cost of eventually selling. Renting preserves cash that could remain invested. We will keep both sides of that ledger visible.

I’m going to show you the result—and the assumptions capable of changing it.

First, how long do you realistically think you may stay?

STEP 1

Time changes this answer more than most people expect.

Buying and selling have transaction costs. A longer stay gives principal paydown and possible appreciation more time to offset them.

Expected time in the home

7 years

Where in Northern Virginia are you comparing?

Fairfax County’s 2026 base real-estate tax rate is loaded below. Special districts, towns, and parcel-specific fees may add to it.

Cash available for down payment and purchase costs

This does not change the wealth comparison. It lets us flag whether the modeled purchase appears immediately feasible.

Now let’s describe the home you would rent instead.

STEP 2

Use a comparable home, not the cheapest rental you can imagine.

If you would buy a three-bedroom townhome but rent a one-bedroom apartment, the calculator can do the math—but it is comparing two different lifestyles.

Monthly rent

Renters insurance per month

Refundable security deposit

We treat this as restricted cash that is returned—not as rent permanently spent.

How the renting side works

Rent and renters insurance are monthly housing costs. The model also invests the cash the renter did not use for a down payment and purchase closing costs. When renting costs less in a month, that difference is invested too.

Next, tell me about the home you would consider buying.

STEP 3

We will follow the mortgage, ownership costs, and equity month by month.

Expected purchase price

Down payment

$65,000

Mortgage interest rate

Use a lender quote when available.

Loan term

Mortgage insurance

Monthly HOA or condo fee

Annual homeowners insurance

Where principal and PMI appear

Interest is a financing cost. Principal reduces what you owe and becomes part of your equity. For a conventional estimate below 20% down, the model includes PMI until the scheduled balance reaches 78% of the original home value. Your lender’s actual cancellation rules and premium can differ.

Before I show you the answer, let’s make the uncertain parts visible.

STEP 4

These are planning assumptions—not promises about the future.

Start with the planning case. Afterward, you can test conservative and favorable scenarios without retyping your answers.

Review and adjust assumptions

Annual property-tax rate

Planning placeholder until the maintained locality feed is connected.

Annual maintenance reserve

Buyer closing costs

Future selling costs

Annual home-price change

Annual rent change

Return on invested savings

Estimated annual federal tax benefit

Defaults to $0 because tax benefits depend on whether you itemize and your individual circumstances.

Here is what your numbers suggest—and how confident we should be.

YOUR ANSWER

PLANNING CASE

Calculating your comparison…

Estimated break-even—

Buyer net position—

Renter net position—

BREAK-EVEN VIEW

How the two financial positions change

BuyerRenter

View the accessible year-by-year table

Rent-versus-buy projection by year
Year	Buyer net position	Renter net position	Difference

Edit your answers Check affordability Calculate buyer closing costs Schedule a no-cost review

COMMON QUESTIONS

What I would want you to understand before deciding

Does break-even mean buying is guaranteed to make money?

No. It is the first stable point where the buyer’s modeled net position exceeds the renter’s under the assumptions entered. Appreciation, repairs, rent changes, investment returns, and the timing of a sale can all turn out differently.

Why do you count money the renter could invest?

A renter does not use cash for a down payment and purchase closing costs. Ignoring what happens to that cash biases the comparison toward buying. The model invests it at the return assumption you select.

Why isn’t principal treated like a cost?

Principal reduces the loan balance and generally becomes equity. Interest, taxes, insurance, maintenance, and transaction costs do not.

What if I would rent a smaller home than I would buy?

That is a valid lifestyle choice, but it is not an apples-to-apples housing comparison. Enter the real options you are considering and interpret the difference as including the value you place on the extra space or features.

Does this include the mortgage-interest tax deduction?

Not by default. The benefit depends on whether you itemize, deduction limits, and your tax situation. You may enter a tax professional’s estimate under advanced assumptions.

What if there is no break-even within 15 years?

It means renting remains ahead throughout the displayed period under these assumptions. It does not mean buying is wrong; it means the financial case depends on a longer stay, different future conditions, or non-financial benefits.

SOURCES AND CALCULATION NOTES

How the estimate is built

The engine runs monthly. It amortizes the mortgage, estimates recurring ownership and rental costs, grows the home and rent using the selected assumptions, invests unused cash and monthly savings differences, and estimates what the owner would retain after selling costs.

Local tax defaults last verified: August 14, 2026. Next review: September 2026.

Educational planning estimate only. Local defaults use base rates and do not include every town, service-district, stormwater, fire, refuse, or parcel-specific charge. Verify the actual parcel with the locality. This is not a mortgage quote, appraisal, investment recommendation, tax advice, or guarantee of future market performance.

REVIEW YOUR COMPARISON

Want to look at the actual homes behind these numbers?

I can review the assumptions with you, compare realistic rental and purchase options, and help you understand which unknowns matter most. No cost. No obligation.

Schedule a review with Abraham