Price-to-rent ratios by metro in 2026 range from 13.2 in Pittsburgh to 33.4 in San Jose, based on Zillow home values and rents on DataPorium as of August 31, 2026 [1]. Buying looks favorable relative to renting in 9 of the 49 largest metros, where the typical home costs less than 15 years of rent, including Pittsburgh, Chicago, New Orleans and Cleveland. Renting is the cheaper option in 16 metros with ratios above 20, led by San Jose, Salt Lake City, San Francisco and Los Angeles [1]. The national ratio was 15.8 [1].
What the price-to-rent ratio measures
The price-to-rent ratio divides the typical home value by one year of typical rent. A ratio of 15 means a home costs as much as 15 years of rent. A common rule of thumb reads a ratio below 15 as favoring buying, 15 to 20 as a gray zone and above 20 as favoring renting. The ratios here use Zillow's Home Value Index (all homes, smoothed and seasonally adjusted) and Zillow's Observed Rent Index (all homes plus multifamily) for August 2026 [1]. The ratio is a starting point: it ignores taxes, insurance, maintenance, expected appreciation and how long a household plans to stay.
Price-to-rent ratios by metro: where buying beats renting
The metros with the lowest ratios are concentrated in the Midwest, the Rust Belt and parts of the South [1]:
- Pittsburgh: ratio 13.2, typical home $232,122, typical rent $1,469
- Chicago: ratio 13.5, typical home $357,265, typical rent $2,210
- New Orleans: ratio 13.6, typical home $261,002, typical rent $1,598
- Cleveland: ratio 14.5, typical home $253,678, typical rent $1,454
- Memphis: ratio 14.6, typical home $244,737, typical rent $1,400
- Detroit: ratio 14.6, typical home $267,167, typical rent $1,524
In these markets, home values are low relative to what landlords can charge, which also makes them attractive to rental investors. With a 20% down payment at the 6.71% average 30-year rate for the week of September 3, 2026, the principal and interest payment on a typical home would be less than the typical rent in 12 of the 49 metros, including Pittsburgh, Chicago, New Orleans and Cleveland [1][2]. That comparison leaves out property tax, insurance and upkeep, so the true cost of owning is higher, but it shows where ownership comes closest to parity with renting.
Florida and Texas: near the line or above it
Miami (14.9), Tampa (14.9) and Houston (15.5) are near the threshold of 15 [1]. Dallas (18.1) and Austin (21.5) sit higher, closer to the renting side of the range, even though values in both metros fell over the past year [1].
Where renting beats buying in 2026
At the other end, San Jose had the highest ratio at 33.4: a typical home worth $1,527,731 against a typical rent of $3,815 a month [1]. Salt Lake City (28.4), San Francisco (27.5), Los Angeles (27.0), Seattle (26.6) and San Diego (25.9) follow. In San Jose, the principal and interest payment alone on a typical home with 20% down would be about $7,895 a month, more than twice the typical rent of $3,815 [1][2]. Households in these metros who rent and invest the difference may accumulate more wealth than owners, unless home prices rise faster than the market expects.
The typical home costs 13 years of rent in Pittsburgh but 33 years of rent in San Jose, which is why the rent-or-buy answer depends on the metro.
Price-to-rent ratio for the 49 largest metros
The table lists each metro's ratio from lowest to highest, with the typical home value and rent for August 2026 and the estimated monthly principal and interest payment with 20% down at 6.71% [1][2]. The median ratio across the 49 metros is 17.8.
| Rank | Metro | Typical home value | Typical monthly rent | Price-to-rent ratio | Monthly P&I, 20% down |
|---|---|---|---|---|---|
| 1 | Pittsburgh | $232,122 | $1,469 | 13.2 | $1,199 |
| 2 | Chicago | $357,265 | $2,210 | 13.5 | $1,846 |
| 3 | New Orleans | $261,002 | $1,598 | 13.6 | $1,349 |
| 4 | Cleveland | $253,678 | $1,454 | 14.5 | $1,311 |
| 5 | Memphis | $244,737 | $1,400 | 14.6 | $1,265 |
| 6 | Detroit | $267,167 | $1,524 | 14.6 | $1,381 |
| 7 | Oklahoma City | $245,317 | $1,388 | 14.7 | $1,268 |
| 8 | Miami | $475,830 | $2,666 | 14.9 | $2,459 |
| 9 | Tampa | $358,706 | $2,001 | 14.9 | $1,854 |
| 10 | Houston | $305,001 | $1,643 | 15.5 | $1,576 |
| 11 | Indianapolis | $293,506 | $1,552 | 15.8 | $1,517 |
| 12 | St. Louis | $275,704 | $1,443 | 15.9 | $1,425 |
| 13 | San Antonio | $276,747 | $1,422 | 16.2 | $1,430 |
| 14 | Virginia Beach | $373,040 | $1,891 | 16.4 | $1,928 |
| 15 | Orlando | $383,445 | $1,942 | 16.5 | $1,981 |
| 16 | Hartford | $402,457 | $2,034 | 16.5 | $2,080 |
| 17 | Buffalo | $291,683 | $1,449 | 16.8 | $1,507 |
| 18 | Cincinnati | $308,426 | $1,522 | 16.9 | $1,594 |
| 19 | New York | $735,075 | $3,615 | 16.9 | $3,799 |
| 20 | Atlanta | $377,428 | $1,853 | 17.0 | $1,950 |
| 21 | Philadelphia | $389,524 | $1,911 | 17.0 | $2,013 |
| 22 | Baltimore | $400,263 | $1,948 | 17.1 | $2,068 |
| 23 | Jacksonville | $350,783 | $1,696 | 17.2 | $1,813 |
| 24 | Louisville | $280,129 | $1,348 | 17.3 | $1,448 |
| 25 | Kansas City | $327,320 | $1,529 | 17.8 | $1,691 |
| 26 | Columbus | $330,327 | $1,521 | 18.1 | $1,707 |
| 27 | Dallas | $360,437 | $1,659 | 18.1 | $1,863 |
| 28 | Charlotte | $384,458 | $1,749 | 18.3 | $1,987 |
| 29 | Minneapolis | $388,865 | $1,719 | 18.8 | $2,009 |
| 30 | Richmond | $394,521 | $1,729 | 19.0 | $2,039 |
| 31 | Riverside | $581,454 | $2,541 | 19.1 | $3,005 |
| 32 | Washington | $573,336 | $2,433 | 19.6 | $2,963 |
| 33 | Boston | $733,574 | $3,074 | 19.9 | $3,791 |
| 34 | Providence | $525,363 | $2,167 | 20.2 | $2,715 |
| 35 | Las Vegas | $423,983 | $1,742 | 20.3 | $2,191 |
| 36 | Milwaukee | $388,845 | $1,563 | 20.7 | $2,009 |
| 37 | Nashville | $452,186 | $1,813 | 20.8 | $2,337 |
| 38 | Sacramento | $574,820 | $2,282 | 21.0 | $2,970 |
| 39 | Phoenix | $442,078 | $1,722 | 21.4 | $2,284 |
| 40 | Raleigh | $431,269 | $1,675 | 21.5 | $2,229 |
| 41 | Austin | $417,977 | $1,622 | 21.5 | $2,160 |
| 42 | Denver | $559,705 | $1,922 | 24.3 | $2,892 |
| 43 | Portland | $542,843 | $1,818 | 24.9 | $2,805 |
| 44 | San Diego | $930,785 | $2,994 | 25.9 | $4,810 |
| 45 | Seattle | $727,359 | $2,278 | 26.6 | $3,759 |
| 46 | Los Angeles | $952,601 | $2,941 | 27.0 | $4,923 |
| 47 | San Francisco | $1,123,193 | $3,409 | 27.5 | $5,804 |
| 48 | Salt Lake City | $560,068 | $1,641 | 28.4 | $2,894 |
| 49 | San Jose | $1,527,731 | $3,815 | 33.4 | $7,895 |
How investors and households may use the ratio
For rental investors, a low ratio means a higher gross rent yield: at a ratio of 13, gross rent equals about 7.7% of the home's value each year, before costs. For households, the ratio helps frame the decision, but personal factors matter more: job stability, how long they plan to stay and the return they could earn on a down payment invested elsewhere. The market-oriented reading is that high ratios signal constrained supply rather than a bubble in every case; metros that restrict building keep both prices and rents high, and prices adjust more. Metro and ZIP-level values and rents are available on DataPorium's housing market page [1]. Nationally, Zillow reported a typical home value of $371,757 and a typical rent of $1,962 in July [3].
Key takeaways
- Pittsburgh (13.2), Chicago (13.5) and New Orleans (13.6) had the lowest price-to-rent ratios among the 49 largest metros in August 2026 [1].
- San Jose (33.4), Salt Lake City (28.4) and San Francisco (27.5) had the highest, where renting is far cheaper than owning [1].
- 9 metros were below 15, the common threshold for favoring buying; 16 were above 20 [1].
- The U.S. price-to-rent ratio was 15.8, with a typical home value of $368,697 and typical rent of $1,948 [1].
Frequently asked questions
What is a good price-to-rent ratio?
A common rule of thumb treats a ratio below 15 as favoring buying and above 20 as favoring renting. The U.S. ratio was 15.8 in August 2026, based on Zillow data [1].
Where is it cheaper to buy than rent in 2026?
Among the largest metros, Pittsburgh, Chicago, New Orleans and Cleveland had the lowest price-to-rent ratios in August 2026, all below 15 [1].
Where is it better to rent than buy?
San Jose, Salt Lake City, San Francisco and Los Angeles had ratios of 27.0 or more in August 2026, so renting costs far less each month than owning a typical home [1].
How do you calculate the price-to-rent ratio?
Divide the typical home value by 12 times the typical monthly rent. For the U.S. in August 2026: $368,697 divided by $23,376 gives 15.8 [1].
