Rent vs Buy in Boston, MA

Compare renting vs buying with Boston's real market data (2025)

Boston Housing Market at a Glance

Median Home Price

$725,000

Median Monthly Rent

$3,100

Property Tax Rate

1.17%

Avg Home Insurance

$1,800/yr

Price-to-Rent Ratio: 19.5x (Lower ratios favor buying; higher ratios favor renting)

Boston-Specific Insights

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Key Factors for Boston Buyers

1. Down Payment Requirements

With Boston's median home price of $725,000, a 20% down payment is $145,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).

2. Property Taxes

MA's property tax rate averages 1.17%, which translates to roughly $706.875/month on a median-priced home. This is near the national average.

3. Tax Deductions

Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). Combined with MA state taxes, itemizing may be worthwhile.

4. Opportunity Cost

If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.

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