What this calculator does
The Miami rent vs buy calculator compares the true cost of owning with the cost of renting over the number of years you expect to stay. It counts the costs that never come back — interest, property tax, insurance, upkeep, HOA or condo fees, and the cost of buying and selling — and credits the owner with the equity built. For renters, it credits the investment growth on the down payment they did not spend.
Much of Miami's housing is in condo towers, from Brickell and Edgewater to Miami Beach, while Coral Gables, Coconut Grove and Little Havana offer houses and low-rise buildings. Since the 2021 Surfside collapse, new state laws require milestone inspections and fully funded structural reserves, and many associations have raised dues or levied special assessments.
How to use it
- Enter a realistic home price and the rent for a comparable place.
- Set your down payment, mortgage rate and how long you plan to stay.
- Keep or change the local defaults: property tax (1.80% of value is Rate and Reason's rough Miami starting point), insurance, maintenance and HOA dues.
- Adjust rent growth, home price growth and investment return — these assumptions move the answer most.
- Read the break-even year to see how long you would need to stay for buying to win.
The formula
Net cost of buying = buyer closing costs + mortgage payments + property tax + insurance + maintenance + HOA − (sale price − remaining loan − selling costs − seller transfer taxes). Net cost of renting = total rent − investment growth on the down payment and closing costs. The cheaper option is the one with the lower net cost.
Worked example for Miami
Default Miami inputs with a 7-year stay:
| Item | Amount |
|---|---|
| Everything paid as an owner (down payment, closing, mortgage, tax, insurance, upkeep, HOA) | $653,946 |
| Equity you walk away with after selling | -$255,223 |
| Seller transfer taxes on the future sale (included above) | $4,428 |
| Net cost of buying | $398,724 |
| Rent paid | $303,434 |
| Investment growth on the down payment you did not spend | -$54,959 |
| Net cost of renting | $248,475 |
Over 7 years, renting comes out ahead by $150,249. Buying starts to win after about 28 years with these assumptions.
What tips the balance in Miami
Miami-Dade property tax is figured in mills (dollars per $1,000 of value), with a combined City of Miami rate near 20 mills in 2025. Homestead exempts $25,000 from all levies and an additional amount (about $26,411 in 2026) from non-school levies, and Save Our Homes limits yearly increases in assessed value to 3% or inflation, 2.7% for 2026.
Florida charges documentary stamp tax on deeds and mortgages. Miami-Dade is unique: deeds for single-family residences pay $0.60 per $100, while other property pays $0.70 plus a $0.45 county surtax per $100. Mortgages pay $0.35 per $100 in note stamps plus a 0.2% intangible tax.
Common mistakes and tips
- Comparing rent with the mortgage payment alone, ignoring tax, insurance, upkeep and transaction costs.
- Assuming fast home price growth — try 0% or 1% to see the downside.
- Staying a short time: transaction costs usually make buying expensive for stays under about five years.
- Forgetting that a renter's savings only help if they are actually invested.
- Using a statewide property tax rate instead of the local one — Miami has its own rules, covered in the Miami property tax calculator.
Frequently asked questions
Is it better to rent or buy in Miami?
It depends on how long you stay and what you assume about prices and rents. With this calculator's default Miami inputs, renting comes out ahead by $150,249 over 7 years. Buying starts to win after about 28 years with these assumptions.
How long do I need to stay for buying to make sense?
Look at the break-even year in the result. It is the first year when the net cost of buying drops below renting with your assumptions.
Why include investment returns for renters?
Money not spent on a down payment and closing costs can be invested. Leaving that out makes renting look worse than it is.
Are Miami transfer taxes included?
Yes. The seller-side transfer taxes on the future sale come from the Miami rules in the site's tax engine, and buyer closing costs are an input you can change.
Sources
Disclaimer
This calculator provides estimates for educational purposes only and is not financial, tax, legal, real estate, or insurance advice. Consult a licensed professional before making decisions.