Rent vs Buy in St. Paul, MN: Should You Rent or Buy a Home?
In St. Paul, MN, the median home is worth $294,500 and a typical 3-bedroom rental costs $1,713 a month. With the latest 7.24% average mortgage rate (2026-10-29), buying comes out ahead after 20 years by $102,934 ($62,817 in today's dollars). Buying pulls ahead after 10 years at today's rate; at 6%, buying pulls ahead after 6 years; at 5%, buying pulls ahead after 4 years.
Data: U.S. Census Bureau ACS 2020–2024 · Mortgage rate 7.24% (Freddie Mac, 2026-10-29) · Updated 2026-11-01 · How we calculate
Calculator
Start typing a county, city or ZIP code, then pick it from the list.
Using local Census figures for St. Paul, MN.
$59,000
30-yr avg 7.24% on 2026-10-29
$3,705 a year
Fine-tune assumptions (growth, inflation, costs, taxes)
After 20 years in St. Paul, MN
Buying comes out ahead by $102,934
$62,817 in today's dollars. Buying has been ahead since year 10. Buying wins over 20 years if comparable rent is above $1,530/mo (you entered $1,713).
If you buy
- Home value
- $586,988
- Mortgage still owed
- −$137,056
- Selling costs
- −$35,219
- Savings invested (after tax)
- +$12,435
- You walk away with
- $427,148
If you rent and invest
- Cash not spent on buying
- $67,850
- Monthly savings invested
- $58,006
- Growth at 6.0%, after tax
- +$198,358
- You walk away with
- $324,214
Both cards are in year-20 dollars.
Monthly cost in year 1
- Mortgage (principal + interest)
- $1,608
- Property tax
- $309
- Home insurance
- $172
- Maintenance
- $246
Principal isn't really a cost — it becomes equity. The comparison that matters is the money you never get back, below.
What your numbers mean
In the first year, owning costs about $2,335 a month: $1,608 mortgage payment, $309 property tax, $172 insurance, $246 upkeep. Renting a comparable home costs $1,713. So the renter has $622 a month left over, and invests it — on top of the $67,850 down payment and closing costs they never had to spend.
Rent rises 3.5% a year while the mortgage payment stays fixed, so by year 15 renting costs more than owning. From then on, the buyer is the one with money left over to invest.
After 20 years the home is worth $586,988 (growing 3.5% a year from $295,000). You still owe $137,056 on the mortgage and pay about $35,219 to sell, leaving $414,713 in equity, plus $12,435 (after tax) from the monthly savings they invested.
The renter's investments, earning 6.0% a year, grow to $324,214 after 15% tax on the gains. That only happens if the money really is invested every month — renting and spending the difference makes buying the better choice almost everywhere.
Buying leaves you $102,934 richer after 20 years. With inflation at 2.5% a year, a dollar then buys what 61 cents buys today, so the gap is worth $62,817 in today's money.
The result is sensitive: it flips if investments earn 8% a year instead of 6%. See "What would change the answer" below.
Total cost over 20 years
| Where the money goes | Amount |
|---|---|
| Down paymentequity | $59,000 |
| Mortgage principalequity | $98,944 |
| Closing costs | $8,850 |
| Mortgage interest | $287,056 |
| Property tax | $104,782 |
| Insurance | $58,398 |
| Maintenance | $83,425 |
| Selling costs | $35,219 |
| Total paid to buy and own | $735,674 |
| Money you never get back | $577,730 |
| Rent | $581,317 |
| Renter's insurance | $4,598 |
| Money you never get back renting | $585,915 |
“Equity” rows are savings locked in the home, not costs. Figures are in future (nominal) dollars.
What would change the answer?
Nobody knows future home prices, rents or market returns. Each row below reruns your exact numbers with just one thing changed, so you can see which assumptions matter. Rows marked “Answer flips” change the winner.
| What if… | Who comes out ahead, and by how much |
|---|---|
| Nothing changes — your numbers, staying 20 years | Buying ahead by $102,934 |
| Home prices grow 2% a year instead of 3.5% | Buying ahead by $11,553 |
| Home prices grow 5% a year instead of 3.5% | Buying ahead by $202,442 |
| Your mortgage rate is 6.24% instead of 7.24% | Buying ahead by $176,720 |
| Investments earn 4% a year instead of 6% | Buying ahead by $191,976 |
| Investments earn 8% a year instead of 6% | Renting ahead by $21,663Answer flips |
| Rent rises 4.5% a year instead of 3.5% | Buying ahead by $190,258 |
| You stay 15 years instead of 20 | Buying ahead by $41,352 |
| You stay 25 years instead of 20 | Buying ahead by $182,975 |
Year-by-year breakdown
| Year | Home value | Loan balance | Owning / yr | Rent / mo | Net worth (buy) | Net worth (rent) | Difference |
|---|---|---|---|---|---|---|---|
| 1 | $305,325 | $233,711 | $28,020 | $1,713 | $53,294 | $78,763 | −$25,469 |
| 2 | $316,011 | $231,252 | $28,325 | $1,773 | $65,799 | $89,837 | −$24,038 |
| 3 | $327,072 | $228,608 | $28,641 | $1,835 | $78,840 | $101,070 | −$22,230 |
| 4 | $338,519 | $225,766 | $28,968 | $1,899 | $92,443 | $112,460 | −$20,018 |
| 5 | $350,367 | $222,711 | $29,307 | $1,966 | $106,634 | $124,005 | −$17,371 |
| 6 | $362,630 | $219,428 | $29,657 | $2,035 | $121,445 | $135,702 | −$14,257 |
| 7 | $375,322 | $215,899 | $30,019 | $2,106 | $136,904 | $147,546 | −$10,642 |
| 8 | $388,459 | $212,105 | $30,395 | $2,179 | $153,046 | $159,534 | −$6,489 |
| 9 | $402,055 | $208,028 | $30,783 | $2,256 | $169,903 | $171,661 | −$1,757 |
| 10 | $416,127 | $203,646 | $31,185 | $2,335 | $187,513 | $183,919 | +$3,594 |
| 11 | $430,691 | $198,936 | $31,601 | $2,416 | $205,914 | $196,303 | +$9,610 |
| 12 | $445,765 | $193,873 | $32,031 | $2,501 | $225,147 | $208,806 | +$16,341 |
| 13 | $461,367 | $188,431 | $32,477 | $2,588 | $245,254 | $221,417 | +$23,837 |
| 14 | $477,515 | $182,582 | $32,938 | $2,679 | $266,282 | $234,128 | +$32,154 |
| 15 | $494,228 | $176,295 | $33,415 | $2,773 | $288,395 | $247,043 | +$41,352 |
| 16 | $511,526 | $169,537 | $33,909 | $2,870 | $312,227 | $260,733 | +$51,494 |
| 17 | $529,429 | $162,274 | $34,421 | $2,970 | $337,892 | $275,244 | +$62,647 |
| 18 | $547,959 | $154,467 | $34,950 | $3,074 | $365,512 | $290,626 | +$74,886 |
| 19 | $567,138 | $146,075 | $35,498 | $3,182 | $395,218 | $306,931 | +$88,287 |
| 20 | $586,988 | $137,056 | $36,065 | $3,293 | $427,148 | $324,214 | +$102,934 |
| 21 | $607,532 | $127,361 | $36,651 | $3,409 | $458,865 | $342,534 | +$116,331 |
| 22 | $628,796 | $116,940 | $37,259 | $3,528 | $492,698 | $361,954 | +$130,744 |
| 23 | $650,804 | $105,740 | $37,887 | $3,651 | $529,123 | $382,538 | +$146,584 |
| 24 | $673,582 | $93,701 | $38,538 | $3,779 | $568,315 | $404,358 | +$163,957 |
| 25 | $697,157 | $80,762 | $39,211 | $3,911 | $610,462 | $427,487 | +$182,975 |
| 26 | $721,558 | $66,853 | $39,908 | $4,048 | $655,762 | $452,003 | +$203,759 |
| 27 | $746,812 | $51,904 | $40,629 | $4,190 | $704,429 | $477,991 | +$226,438 |
| 28 | $772,951 | $35,835 | $41,376 | $4,337 | $756,688 | $505,537 | +$251,151 |
| 29 | $800,004 | $18,564 | $42,148 | $4,488 | $812,783 | $534,737 | +$278,046 |
| 30 | $828,004 | $0 | $42,948 | $4,645 | $872,971 | $565,688 | +$307,282 |
Difference is positive when buying is ahead. Each row assumes you sell at the end of that year.
Renting vs buying in St. Paul, MN: the local numbers
Median home value
$294,500
Median rent, 3-bedroom
$1,713
Price-to-rent ratio
14.3
leans toward buying
Property tax rate
1.26%
The typical owner-occupied home in St. Paul, MN is worth $294,500, and the median rent for a 3-bedroom rental is $1,713 a month including utilities. That's a price-to-rent ratio of 14.3 — the home costs 14.3 years of rent — compared with 17.4 across Minnesota and 17.5 nationally. By that rule of thumb the local market leans toward buying.
Between the 2015–2019 and 2020–2024 Census surveys, home values here rose 36% and median rent rose 32%. Recent growth is not a forecast: the calculator uses long-run averages by default, and you can change them.
Homeowners pay an effective property tax rate of 1.26%, well above the 0.94% national rate — about $3,699 a year on the median home. Property tax is money a renter never pays directly, so high-tax areas need more appreciation for buying to pay off.
The median household earns $73,394, so the median home costs 4.0× a year's income (4.1× nationally), and 53% of households own their home. Renters spend a median 30% of income on rent.
| Compared with | St. Paul | Minnesota | United States |
|---|---|---|---|
| Median home value | $294,500 | $329,300 | $332,700 |
| Median rent, all rentals | $1,281 | $1,280 | $1,413 |
| Median rent, 2 bedrooms | $1,404 | $1,356 | $1,407 |
| Median rent, 3 bedrooms | $1,713 | $1,573 | $1,584 |
| Price-to-rent ratio | 14.3 | 17.4 | 17.5 |
| Effective property tax rate | 1.26% | 1.00% | 0.94% |
| Median household income | $73,394 | $89,062 | $80,734 |
| Home value ÷ income | 4.0× | 3.7× | 4.1× |
| Homeownership rate | 53% | 72% | 65% |
| Home value change, 5 yrs | +36% | +41% | +47% |
| Rent change, 5 yrs | +32% | +31% | +33% |
Compare nearby:
Source: U.S. Census Bureau, American Community Survey 5-year estimates (2020–2024; 5-year changes vs 2015–2019). Home values are owners' estimates; rents include utilities and reflect all current renters, so new leases are often higher.
How the mortgage rate changes the answer in St. Paul
The same $295,000 home and $1,713 rent, 20% ($59,000) down, staying 20 years, with prices and rents growing 3.5% a year and investments earning 6%. Only the rate changes; adjust any of these in the calculator above.
| Mortgage rate | After 20 years | Break-even |
|---|---|---|
| 7.24% (latest average) | Buying ahead by $102,934 | Buying pulls ahead after 10 years |
| 6% | Buying ahead by $194,042 | Buying pulls ahead after 6 years |
| 5% | Buying ahead by $264,433 | Buying pulls ahead after 4 years |
Over the last five years of Census surveys (2015–2019 to 2020–2024), St. Paul's median home value rose 36% and median rent rose 32%, against 41% and 31% across Minnesota.
St. Paul compared with similar cities
The 5 cities whose price-to-rent ratio is closest to St. Paul's (14.3), run with the same assumptions.
| City | Median home value | Rent | Price-to-rent | Property tax | After 20 years |
|---|---|---|---|---|---|
| St. Paul, MN | $294,500 | $1,713 | 14.3 | 1.26% | Buying by $103k |
| Norfolk, VA | $289,900 | $1,690 | 14.3 | 0.91% | Buying by $152k |
| Louisville, KY | $233,900 | $1,353 | 14.4 | 0.85% | Buying by $125k |
| Columbus, OH | $252,900 | $1,459 | 14.4 | 1.36% | Buying by $71k |
| Winston-Salem, NC | $233,800 | $1,336 | 14.6 | 0.88% | Buying by $112k |
| Kansas City, MO | $242,900 | $1,447 | 14.0 | 1.12% | Buying by $121k |
| Minnesota (state) | $329,300 | $1,573 | 17.4 | 1.00% | Balanced |
Other Minnesota cities: Minneapolis.
Renting vs buying in St. Paul: common questions
Is it cheaper to rent or buy in St. Paul, MN?
With typical local prices and rents and a 7.24% mortgage, buying leaves you $102,934 better off after 20 years. In year one, owning the median home costs about $2,335 a month against $1,713 in rent, but the answer depends mostly on how long you stay.
How long do you need to stay in St. Paul for buying to pay off?
Buying pulls ahead after 10 years at today's rate; at 6%, buying pulls ahead after 6 years; at 5%, buying pulls ahead after 4 years. On the median St. Paul home, buying costs about $8,850 in closing costs and selling about $17,670 at today's price, and price growth and loan paydown have to earn that back before buying comes out ahead.
What is the price-to-rent ratio in St. Paul?
14.3: the median home costs 14.3 years of median 3-bedroom rent, compared with 17.4 across Minnesota and 17.5 nationally. By the usual rule of thumb (under 15 favors buying, over 20 favors renting) the St. Paul market leans toward buying.
How high are property taxes in St. Paul?
Homeowners pay an effective 1.26% of their home's value a year, well above the 0.94% national rate. On the $294,500 median home that's about $3,699 a year, a cost renters don't pay directly.