Research / Rent vs. buy / Michigan / Dearborn

Rent or buy in Dearborn?
Renting is $203 a month cheaper.

Renting the typical home in Dearborn costs $203 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 5.

Updated September 26, 2026 · Zillow data for August 2026 · 7.03% mortgage rate (Freddie Mac, September 24, 2026) · Rank 21 of 340 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study

Monthly cost to own$2,008typical home, 20% down
Typical monthly rent$1,805Zillow, August 2026
Buying breaks evenYear 53.5% price growth
Cash needed to buy$57,670$250,741 home · 20% down + 3% closing
Income needed to own$80,339vs. $72,200 to rent · 30% rule

Where the monthly money goes.

The first-month cost of owning the typical Dearborn home, split into its parts, against the typical rent. About $163 of the first mortgage payment is principal, which you keep as equity.

The median household income in Dearborn is $65,324 (Census ACS 2020–2024). Owning the typical home would take 37% of it; renting would take 33%.

As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the Detroit-Warren-Livonia, MI HUD Metro FMR Area area is $1,777 a month, still $231 below the cost of owning.

  • Mortgage principal & interest $1,339
  • Property tax $368
  • Home insurance $93
  • Maintenance $209

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 Dearborn, by years in the home
StayResult
3 yearsRenting ahead by $8,267
5 yearsBuying ahead by $4,441
7 yearsBuying ahead by $20,181
10 yearsBuying ahead by $50,565
15 yearsBuying ahead by $124,366
20 yearsBuying ahead by $237,786
30 yearsBuying ahead by $656,275

Rent or buy elsewhere in Michigan.

Other large Michigan cities in the study.

All cities
DetroitOwning $665/mo cheaperGrand RapidsRenting $669/mo cheaperWarrenRenting $225/mo cheaperSterling HeightsRenting $813/mo cheaperAnn ArborRenting $1,996/mo cheaperLansingRenting $214/mo cheaper

More on Dearborn

See the full Dearborn 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 Dearborn. The cost of owning includes principal and interest at 7.03% with 20% down, property tax at the city's 1.76% effective rate (Census ACS), the Michigan 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.