Rent vs. Buy Calculator: Is It Better to Buy in Miami, FL?
Pre-filled with Miami, FL's median home price ($520,000), local property tax rate (1%), and an estimated equivalent rent — adjust any number to match your specific situation.
Median home price
$520,000
Property tax rate
1%
Est. equivalent rent
$1,950/mo
Price-to-rent ratio
22×
Your situation
Buying wins over 10 years
Saves you $71,441 vs the alternative · breaks even in year 6
💡 What if the down payment was invested instead?
Adds a purple line: rent + $104,000 growing at 8%/yr
Net cost of buying
$196,814
Total cost renting
$268,255
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Assumes 30-year fixed mortgage, 3% closing costs, 1% annual maintenance, 7% selling costs. For educational purposes only — consult a financial advisor.
Compare another market:
Florida taxes and what they mean for your decision
Florida has no state income tax, a major driver of the wave of relocations from New York and other high-tax states in recent years, though Miami's property tax rate of 1.0% is close to the national average.
The Miami, FL rental market
Miami's rental market has been reshaped by significant international and domestic in-migration since 2020, pushing rents up sharply — though as with Jacksonville, Florida-wide insurance cost increases are an important factor not fully captured in this calculator's standard maintenance assumptions.
What makes Miami different
Miami's elevated price-to-rent ratio reflects strong investor and international buyer demand, which can decouple home prices from what local incomes alone would support — run a conservative appreciation assumption here rather than extrapolating recent years' gains.
Miami, FL's price-to-rent ratio: 22×
Dividing the median home price by annual rent for an equivalent home gives the price-to-rent ratio — a quick screening tool used by economists and real estate analysts. A ratio below 15 generally favours buying, 15–20 is a genuine toss-up, and above 20 generally favours renting, all else being equal. Miami, FL currently sits at approximately 22×, which leans toward renting unless you plan a long holding period or expect above-average appreciation.
| Metric | Miami, FL |
|---|---|
| Median home price | $520,000 |
| Estimated equivalent monthly rent | $1,950 |
| Property tax rate | 1% annually |
| State income tax | None |
| Price-to-rent ratio | 22× |
These are metro-level estimates for illustration. Use the calculator above with your specific neighborhood, property, and rental comparison for an accurate result.
Compare other major metros
📍 New York, NY
$780,000 median · 1.7% property tax
📍 Los Angeles, CA
$950,000 median · 0.7% property tax
📍 Chicago, IL
$350,000 median · 2.2% property tax
📍 Houston, TX
$320,000 median · 2.3% property tax · no income tax
📍 Austin, TX
$820,000 median · 2.1% property tax · no income tax
📍 Seattle, WA
$850,000 median · 1% property tax · no income tax
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Miami, FL rent vs buy — frequently asked questions
Is it better to rent or buy in Miami, FL?
It depends heavily on your time horizon and the specific numbers. Miami, FL's current price-to-rent ratio of approximately 22× suggests renting often makes more sense unless you plan a long holding period. Use the calculator above with your specific home price, down payment, and time horizon for a precise answer.
What is the median home price in Miami, FL?
The median home price in Miami, FL is approximately $520,000, though prices vary significantly by neighborhood and property type. This calculator uses the metro median as a starting point — adjust it to match the specific property you are considering.
What are property taxes like in Miami, FL?
Miami, FL has an effective property tax rate of approximately 1% of assessed home value annually. This is close to the US national average of roughly 1.1%.
Does Florida have a state income tax?
No. Florida is one of nine US states with no state income tax, which increases take-home pay for both renters and buyers compared to high-tax states.
How long do I need to stay in Miami for buying to make sense?
Based on Miami, FL's current price-to-rent ratio of 22×, the typical break-even point — accounting for closing costs, selling costs, and the opportunity cost of the down payment — generally falls in the 7-plus-year range for this market. Run the calculator above with your specific numbers and time horizon for an exact figure.