"Am I throwing money away on rent?" is one of the most common questions I hear. The honest answer: not necessarily. Renting and buying are both reasonable choices, and the right one depends on your numbers and how long you'll stay. Here's the math, laid out so you can check it yourself.
The Numbers We're Working With
- Mortgage rate: 7.40%, Freddie Mac's average 30-year fixed rate as of October 8, 2026. A year earlier it was 6.30%.
- Home price: $365,000, Baltimore County's median sold price in September 2026.
- Rent benchmark: HUD's FY2027 Fair Market Rents for the Baltimore-Columbia-Towson metro area: $2,006 a month for a two-bedroom and $2,509 for a three-bedroom.
Home price: Based on information from Bright MLS for September 1, 2026 through September 30, 2026; data is reliable but not guaranteed.
A note on HUD's figures: Fair Market Rents are metro-wide estimates of rent plus utilities, set around the 40th percentile. They're a public yardstick, not a quote for a specific home. Your actual rent could be higher or lower.
Example Only: The Monthly Comparison
Example only — your numbers will differ. Assume you buy at $365,000 with 5% down ($18,250) on a 30-year fixed loan at 7.40%.
| Owning, per month | Amount |
|---|---|
| Principal & interest on $346,750 | $2,401 |
| Property tax (assumption: $1.212 per $100 on a $365,000 assessment) | $369 |
| Homeowners insurance (assumption) | $125 |
| Private mortgage insurance (assumption) | $150 |
| Maintenance set-aside (assumption: 1% of price per year) | $304 |
| Total, before utilities | $3,349 |
The tax line uses Baltimore County's real property rate of $1.10 per $100 of assessed value plus the state rate of $0.112. A home's assessed value isn't always the same as its price, so check the actual assessment on the state's property search.
Compare that with HUD's three-bedroom benchmark of $2,509, which already includes utilities. In this example, owning costs roughly $840 more a month, plus the owner's utilities.
What That Extra Money Buys
The gap isn't all "lost." Some of it goes back to you:
- Equity from your payments. In this example, about $3,260 of the first year's payments goes to principal. That share grows every year.
- A payment that doesn't rise with the market. Principal and interest on a fixed-rate loan stay the same for 30 years. Taxes and insurance can still change.
- Price changes, up or down. If the home gains value, that's yours. If it loses value, that's yours too. Nobody can promise which way prices go.
- Control. You can paint, renovate, and stay as long as you like.
Renting has its own upside, too. The $18,250 down payment, plus closing costs, stays in your savings, where it can earn interest or cover an emergency. And when the water heater fails, it's your landlord's bill, not yours.
One more thing about rates: if they fall later, an owner may be able to refinance to a lower payment. That isn't guaranteed, and refinancing has its own closing costs, so don't buy a payment you can only afford after a refinance.
Taxes may also play a part. Many households take the standard deduction, so don't assume mortgage interest will lower your tax bill. Ask your CPA.
The Upfront Cash and the Cost of Leaving
Buying takes cash at the start: the down payment plus closing costs. Your lender's Loan Estimate will list the closing costs for your loan.
Two things can shrink that number:
- First-time Maryland homebuyers get a reduced state transfer tax that the seller pays, and the seller also pays the county transfer and recordation taxes unless the contract says otherwise.
- Down payment assistance through the Maryland Mortgage Program, for buyers who qualify. See the 2026 Maryland First-Time Buyer's Guide.
Then there's the exit. Selling has real costs too, including commissions you negotiate and transfer taxes. (Here's the breakdown: How Much Does It Actually Cost to Sell a House in Maryland?) If you sell after a year or two, those costs can wipe out the equity you've built. That's why how long you'll stay is the biggest factor in this decision.
When Renting Makes More Sense
- You may move for work or family in the next couple of years.
- Your savings would be drained by the down payment, with nothing left for emergencies.
- You're still working on credit or paying down debt, and a better rate is within reach.
- You haven't decided which area you want to live in long-term.
When Buying Makes More Sense
- You expect to stay put for several years.
- The full monthly cost fits your budget comfortably, not just on paper.
- You have savings left over after closing for repairs and surprises.
- Your rent for a comparable home is already close to what owning would cost.
Run Your Own Numbers
- Write down your current rent and utilities.
- Get a pre-approval with a real rate quote, and ask for an estimate of mortgage insurance.
- Get a homeowners insurance quote for the type of home you want.
- Look up actual property taxes on homes you like.
- Pick a realistic time horizon, and include selling costs at the end.
Rents and prices vary a lot from one neighborhood to the next. For current sale prices, see the Market Reports page, or compare towns on the Communities page.
Sources: Freddie Mac Primary Mortgage Market Survey (October 8, 2026); Bright MLS (Baltimore County, September 1–30, 2026, via this site's Market Reports); HUD FY2027 Fair Market Rents, Baltimore-Columbia-Towson, MD MSA; Baltimore County, Tax Rates; Maryland Board of Public Works, FY2027 State property tax rate; Maryland Code, Tax-Property §13-203; Maryland Code, Real Property §14-104; Maryland Mortgage Program: 1st Time Advantage.
This is general information, not legal, tax, or lending advice — talk to your attorney, CPA, or lender about your situation.