Research / Rent vs. buy / California / Modesto

Rent or buy in Modesto?
Renting is $1,085 a month cheaper.

Renting the typical home in Modesto costs $1,085 less a month than owning it. Counting equity, price growth and what a renter could earn by investing the difference, buying comes out ahead in year 22.

Updated November 12, 2026 · Zillow data for September 2026 · 7.11% mortgage rate (Freddie Mac, November 12, 2026) · Rank 139 of 339 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study

Monthly cost to own$3,107typical home, 20% down
Typical monthly rent$2,022Zillow, September 2026
Buying breaks evenYear 223.5% price growth
Cash needed to buy$101,198$439,988 home · 20% down + 3% closing
Income needed to own$124,290vs. $80,880 to rent · 30% rule

Where the monthly money goes.

The first-month cost of owning the typical Modesto home, split into its parts, against the typical rent. About $282 of the first mortgage payment is principal, which you keep as equity.

The median household income in Modesto is $79,891 (Census ACS 2020–2024). Owning the typical home would take 47% of it; renting would take 30%.

As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the Modesto, CA MSA area is $2,410 a month, still $697 below the cost of owning.

  • Mortgage principal & interest $2,368
  • Property tax $235
  • Home insurance $138
  • Maintenance $367

How long you would need to stay.

Net worth of a buyer compared with a renter who invests the down payment, closing costs and any monthly savings at 6% a year. Home values and rents grow 3.5% a year; selling costs 6%.

Change the assumptions

Buying vs. renting in Modesto, by years in the home
StayResult
3 yearsRenting ahead by $43,934
5 yearsRenting ahead by $45,966
7 yearsRenting ahead by $47,107
10 yearsRenting ahead by $46,670
15 yearsRenting ahead by $37,906
20 yearsRenting ahead by $14,053
30 yearsBuying ahead by $115,584

Rent or buy elsewhere in California.

Other large California cities in the study.

All cities
Los AngelesRenting $3,641/mo cheaperSan DiegoRenting $3,763/mo cheaperSan JoseRenting $5,830/mo cheaperSan FranciscoRenting $5,159/mo cheaperFresnoRenting $818/mo cheaperSacramentoRenting $1,315/mo cheaperLong BeachRenting $3,477/mo cheaperOaklandRenting $2,343/mo cheaper

More on Modesto

See the full Modesto rental market profile with Census medians, or check how a typical rental performs for an investor in our cash-flow ranking.

How we calculated this

Price is the Zillow Home Value Index and rent the Zillow Observed Rent Index for Modesto. The cost of owning includes principal and interest at 7.11% with 20% down, property tax at the city's 0.64% effective rate (Census ACS), the California average homeowners premium (NAIC 2023) and 1% yearly maintenance. It leaves out income-tax effects, HOA dues and utilities. The typical rental may be smaller than the typical home for sale. Full methodology. This is a citywide estimate, not advice about a specific home.