This is the story of a family living in Fort Worth. They collected three years' worth of rent renewal notices and noticed that the rent had increased slightly each year. This led them to ponder whether they should switch to buying a home. To determine whether renting or buying is better, we first need to look at the numbers for this city.

According to Zillow, the typical home value in Fort Worth as of July 31, 2026, is $298,353, which is a 2.0 percent decrease from a year ago. RentCafe reports that the average rent during the same period is $1,453, which is nearly the same as a year ago. Comparing these two figures, the ratio of home prices to rent, simply put, the value of a home divided by one year of rent, comes out to about 17. The lower this number, the more favorable buying is considered, while a higher number suggests that renting is more advantageous.

There is a simple way to interpret this number. Generally, if it's below 15, buying is seen as favorable, and if it's above 20, renting is viewed as favorable, with the range in between indicating a close competition between the two options. Fort Worth's number of 17 falls right in that middle ground, suggesting that personal circumstances will ultimately dictate the decision.

Let's compare the scenario of continuing to rent versus switching to buying with the same budget. If they continue to rent, their monthly payment will likely remain around $1,453. However, they will be unaffected by fluctuations in home prices. If they switch to buying, the mortgage principal and interest will be added to property taxes and insurance, meaning that their initial monthly payment could be higher than rent. However, while rent is subject to annual increases, a fixed-rate mortgage keeps the principal and interest constant.

Fort Worth also varies by neighborhood. Areas with high school district ratings tend to have higher average home prices, and thus stable rental demand. Conversely, relatively cheaper areas have lower entry barriers but require a long-term view on market trends. If the terminology is unfamiliar, think of it this way: a high school rating means there are many buyers when selling, which stabilizes prices.

Whether they have a down payment ready is also an important criterion. If they don't have a lump sum prepared, comparing monthly payments may be premature. The length of residence should also be considered. If they plan to stay for a short time or may move in the future, renting may be less burdensome when factoring in closing costs and selling expenses. If they plan to stay for more than five years, switching to a fixed payment instead of rising rent could be worth considering.

For families moving from out of state, it's important to note that Texas has no state income tax, but property tax rates are relatively high. Tax laws and rental regulations can vary by county, so keep that in mind. For school districts, refer to metrics like GreatSchools, but be sure to verify the assigned school for the specific address before purchasing.

One more term to clarify is PMI, which is a mortgage insurance premium that applies when the down payment is less than 20 percent. This is eliminated once the down payment ratio exceeds 20 percent. It's also good to remember that closing costs can add an additional 2 to 5 percent of the home price. Preparing an emergency fund equivalent to three to four months of living expenses is also important. After purchasing, moving costs, furniture, and minor repairs can add up quickly, so lacking extra funds can lead to significant early burdens.

While the amount by which rent increases at each renewal may not seem large, over three or five years, it can lead to a significant difference. In contrast, with a fixed-rate mortgage, the principal and interest remain unchanged throughout that period. However, after buying, they will need to handle maintenance issues like roofing or HVAC systems that the landlord would have taken care of when renting.

This article is not investment or legal advice, and it is recommended to consult with a professional before entering into any contracts.