Regional starting points
These county indices seed the comparison below. They cover different housing mixes; use comparable listings for your decision.
Typical home value
$455,168
Maricopa County, AZ
· Zillow ZHVI
Zillow ZHVI county series · Retrieved . Coverage and method.
Typical monthly rent
$1,715 / month
Maricopa County, AZ
· Zillow ZORI
Zillow ZORI county series · Retrieved . Coverage and method.
1 · Compare your options
What would each path cost?
Start with two homes that meet the same needs. A countywide home value and rent index can represent different sizes and property types.
Adjust tax and growth assumptions
Mortgage, growth and property tax rates are illustrative scenario assumptions. The starting 0.62% property-tax assumption is not a verified local rate. Convert your estimated annual bill to a percentage of purchase price; do not enter Arizona's assessment ratio or rate per $100 assessed value. The $1,800 yearly insurance and $0 HOA defaults need actual quotes and dues. Check Arizona taxes and insurance
Starting scenario · 10 years · Before income taxes
Renting and investing finishes $222,766 ahead
This compares projected home equity after selling costs with invested cash. It assumes the cheaper housing path invests the entire monthly difference. Changing that behavior can change the answer.
Buying cash at closing
$104,689
Down payment + 3% closing costs; reserves extra
First year buying catches up
Not within 30 years
Annual checkpoints under these assumptions
Monthly budget in year one
Includes housing costs and utilities. Principal builds equity but still leaves your bank account.
Calculated from your inputs using the RentalCalcs model. See costs, source periods and exclusions. Dollar amounts are rounded after calculation.
Renting leaves $1,695 more per month to invest in year one.
Monthly cost breakdown
Scroll the table sideways if needed.
| Cost | Renting | Buying |
|---|---|---|
| Rent / mortgage P&I | $1,715 | $2,423 |
| Property tax | $0 | $235 |
| Insurance | $17 | $150 |
| PMI | $0 | $0 |
| Maintenance reserve | $0 | $569 |
| HOA dues | $0 | $0 |
| Utilities | $150 | $200 |
| Total | $1,882 | $3,577 |
What if you move sooner or stay longer?
Wealth at each exit date, including a home sale. These are nominal dollars and modeled outcomes, not market forecasts.
Scroll the table sideways if needed.
| Exit year | Rent + invest | Buy + sell |
|---|---|---|
| 3 | $194,850 | $107,855 |
| 5 | $264,041 | $145,324 |
| 10Your stay | $476,123 | $253,357 |
| 20 | $1,142,425 | $551,778 |
| 30 | $2,363,517 | $1,021,951 |
Take this scenario further
Change insurance, maintenance, transaction costs and other assumptions in the full calculator. All ten inputs above carry over.
Continue with these numbers →2 · Check the homes you are comparing
What matters for your decision in Tempe?
Include the work and timing that come with flood irrigation
Tempe’s 2026 residential flood-irrigation schedule assigns yard preparation to the customer: maintain berms, keep access clear and remove debris from pipes under driveways and walks. Only Tempe staff may operate the valves. Deliveries can occur overnight and may take several days within a scheduled area; water is not provided during the November–December canal dry-up period.
Tempe residential flood-irrigation schedule and customer responsibilities · 2026 schedule, pages 1–2; neighborhood dates and canal dry-up period. Checked .
Tempe flood-irrigation service and account contacts · Undated current Public Works service page. Checked .
For a home actually served by this program, confirm the account, neighborhood schedule, cancellation procedure and prior overflow problems. Inspect the berms and private conveyance paths, then budget any repair and the time needed to prepare the yard. Ask the lease who handles those duties on the rental alternative. Compare irrigation and any supplemental watering costs using actual bills; a green yard in a listing does not mean automatic year-round service or maintenance by the city.
Compare actual homes with the same financing assumptions in Chandler or Scottsdale. Their local requirements and property costs may differ.
Property taxes after purchase
The 0.62% starting tax rate is an illustrative assumption, not a verified rate for this home. Check the address's county through the Arizona Department of Revenue county tax contacts.
Arizona generally taxes homes using limited property value (LPV), rather than the purchase price. Class-three residential property uses a 10% assessment ratio; published rates are per $100 of assessed value. Neither number is the purchase-price percentage used here. Confirm the parcel's classification, applicable districts and estimated total bill with its assessor and treasurer.
Enter estimated annual property taxes ÷ purchase price × 100. A $3,000 annual estimate on a $400,000 purchase is 0.75%, or $250 a month. Leave Assessed Value at 100% in the full calculator after this conversion; applying 10% again would understate the bill.
The usual 5% LPV growth rule does not cap the total tax bill. Rule B exceptions include major property changes and loss of certain valuation protections. Do not assume a purchase resets LPV to the sale price or that the seller's benefits transfer. Future tax growth here is a scenario assumption; this tool does not calculate Arizona assessments or relief.
Condo dues and upcoming work
For a condo, enter the actual HOA dues and review the reserve study, meeting minutes and special assessments. The starting scenario uses $0 dues; that can understate a condo's cost.
Comparable space and location
Compare similar bedroom counts, commute needs, parking and outdoor space. A county home index and a county rent index do not describe a matched pair of homes.
Insurance quotes and cash reserves
The $1,800 yearly insurance default is not an Arizona quote. Ask about wildfire, wind and hail exposure, coverage limits and deductibles for the address. Standard homeowners insurance excludes flood damage; review Arizona DIFI insurance guidance and any separate flood coverage. Enter combined annual premiums in the full calculator, avoid duplicating coverage paid through HOA dues, and keep deductibles in your cash reserve.
Try a three-year exit alongside your expected stay. Include moving costs, repairs and an emergency reserve in your real budget; the cash-at-closing figure does not include those reserves.
If you would rent out a room or unit, model a house hack separately so rental income and vacancy are explicit.
Looking for rent data or a rental investment?
For local rental research, browse Arizona rent estimates by city and ZIP; ZIP coverage differs from these county indices. To evaluate a property you would rent to someone else, calculate rental cash flow and returns.
3 · Understand the comparison
Sources and assumptions
- Home value reference · Zillow ZHVI
- Maricopa County, AZ (county FIPS 04013; Zillow region 2402). Observation: . All homes, mid-tier, smoothed, seasonally adjusted. Retrieved . Download the Zillow ZHVI county series (CSV).
- Monthly rent reference · Zillow ZORI
- Maricopa County, AZ (county FIPS 04013; Zillow region 2402). Observation: . All homes plus multifamily, smoothed, seasonally adjusted. Retrieved . Download the Zillow ZORI county series (CSV).
- How to use these indices
- Zillow's data definitions describe typical home values (ZHVI) and typical market rents (ZORI). They cover their respective housing stocks, not a matched pair of homes, Tempe city medians or an individual property quote. ZIP-level and listing-based sources use different coverage and may differ. Published source files may be revised after retrieval.
- Financing and ownership costs
- 30-year conventional loan; 3% purchase closing costs; $1,800 yearly home insurance, growing 3%; maintenance at 1.5% of purchase price, growing 2.5%; property taxes growing 2%; $200 monthly owner utilities. PMI is modeled below 20% down at a 0.5% annual rate, until the modeled loan-to-value reaches 80%. All are illustrative assumptions.
- Renting and investing
- $200 yearly renter insurance and $150 monthly utilities. Renting starts with the buyer's down payment and closing costs invested. The path with lower ongoing housing costs invests the difference. Security deposits, broker fees and moving costs are excluded from this comparison.
- Selling and tax treatment
- Selling costs total 7.5% of future home value, including commissions, closing costs and sale preparation. Buyer wealth is equity after selling costs plus invested savings; renter wealth is the investment balance. This comparison excludes income-tax deductions and taxes on investment gains. Dollars are not inflation-adjusted.
Use the full calculator to adjust the remaining costs and explore additional scenarios. Its optional paid report does not gate the free comparison.
Tempe rent vs buy questions
Does a lower monthly rent mean renting is better?
It helps your cash budget, but the wealth result also depends on what you invest, home value growth and when you move. Check both the monthly comparison and the exit-year table.
Why is there no universal Tempe break-even year?
The answer changes with price, rent, financing and investment returns. “Not within 30 years” describes the modeled window, not a claim that buying can never catch up. A first crossover also does not guarantee buying stays ahead.
Can I compare a cash purchase?
Yes. Set the down payment to 100%. The rent scenario then invests the purchase cash and closing costs, so the opportunity cost of paying cash remains in the comparison.