Rent or buy in Philadelphia? Owning is $57 a month cheaper.
Owning the typical home in Philadelphia costs $57 less a month than renting it. Counting equity, price growth and what a renter could earn by investing the difference, buying comes out ahead in year 3.
Updated November 12, 2026 · Zillow data for September 2026 · 7.11% mortgage rate (Freddie Mac, November 12, 2026) · Rank 9 of 339 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study
Monthly cost to own$1,700typical home, 20% down
Typical monthly rent$1,757Zillow, September 2026
Buying breaks evenYear 33.5% price growth
Cash needed to buy$53,265$231,584 home · 20% down + 3% closing
Income needed to own$67,989vs. $70,280 to rent · 30% rule
Where the monthly money goes.
The first-month cost of owning the typical Philadelphia home, split into its parts, against the typical rent. About $149 of the first mortgage payment is principal, which you keep as equity.
The median household income in Philadelphia is $61,953 (Census ACS 2020–2024). Owning the typical home would take 33% of it; renting would take 34%.
As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA area is $2,216 a month, $516 above the cost of owning.
Own
$1,700
Rent
$1,757
Mortgage principal & interest $1,246
Property tax $159
Home insurance $101
Maintenance $193
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%.
Price is the Zillow Home Value Index and rent the Zillow Observed Rent Index for Philadelphia. The cost of owning includes principal and interest at 7.11% with 20% down, property tax at the city's 0.82% effective rate (Census ACS), the Pennsylvania 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.