Foundations for College Math (MAP4C) · Personal Finance

Renting vs. owning — compare monthly cost

Add up the components of the monthly cost of owning (mortgage + property tax + fees) and compare it to renting. Unlimited questions, five difficulty levels, and a full worked solution every time — free.

Practice this skill Curriculum: MAP4C-PF2

Try one

Noah is deciding whether to rent an apartment for $900.00/month or buy a similar condo. Owning would mean a $800.00 mortgage payment, $200.00 in property tax, and $100.00 in condo fees, every month. How much cheaper, per month, is the cheaper option?

Answer: 200

See one solved, step by step

Deshawn is deciding whether to rent an apartment for $1600.00/month or buy a similar condo. Owning would mean a $1000.00 mortgage payment, $250.00 in property tax, and $60.00 in condo fees, every month. How much cheaper, per month, is the cheaper option?

📘 Worked solution

1Owning: $1000.00 + $250.00 + $60.00 = $1310.00Add up all the monthly costs of owning: mortgage, property tax, and condo fees.

2Renting: $1600.00Renting has just the one monthly cost.

3$1600.00 - $1310.00 = $290.00Renting costs more here, so subtract the owning total from the rent to find the difference.

4Owning is cheaper by $290.00 per month.Whichever monthly total is smaller is the better deal, dollar-for-dollar.

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