Research / Rent vs. buy / California / Sacramento

Rent or buy in Sacramento?
Renting is $1,306 a month cheaper.

Renting the typical home in Sacramento costs $1,306 less a month than owning it. Even counting equity and price growth, buying does not come out ahead of renting and investing the difference within 30 years under our baseline assumptions.

Updated September 26, 2026 · Zillow data for August 2026 · 7.03% mortgage rate (Freddie Mac, September 24, 2026) · Rank 169 of 340 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study

Monthly cost to own$3,362typical home, 20% down
Typical monthly rent$2,056Zillow, August 2026
Buying breaks even30+ years3.5% price growth
Cash needed to buy$108,973$473,797 home · 20% down + 3% closing
Income needed to own$134,470vs. $82,240 to rent · 30% rule

Where the monthly money goes.

The first-month cost of owning the typical Sacramento home, split into its parts, against the typical rent. About $309 of the first mortgage payment is principal, which you keep as equity.

The median household income in Sacramento is $87,321 (Census ACS 2020–2024). Owning the typical home would take 46% of it; renting would take 28%.

As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area area is $2,887 a month, still $475 below the cost of owning.

  • Mortgage principal & interest $2,529
  • Property tax $300
  • Home insurance $138
  • Maintenance $395

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 Sacramento, by years in the home
StayResult
3 yearsRenting ahead by $52,751
5 yearsRenting ahead by $59,525
7 yearsRenting ahead by $66,242
10 yearsRenting ahead by $76,005
15 yearsRenting ahead by $90,378
20 yearsRenting ahead by $99,895
30 yearsRenting ahead by $84,815

Rent or buy elsewhere in California.

Other large California cities in the study.

All cities
Los AngelesRenting $3,606/mo cheaperSan DiegoRenting $3,720/mo cheaperSan JoseRenting $5,851/mo cheaperSan FranciscoRenting $5,089/mo cheaperFresnoRenting $833/mo cheaperLong BeachRenting $3,421/mo cheaperOaklandRenting $2,321/mo cheaperBakersfieldRenting $991/mo cheaper

More on Sacramento

See the full Sacramento 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 Sacramento. The cost of owning includes principal and interest at 7.03% with 20% down, property tax at the city's 0.76% 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.