A retired couple was contemplating whether to sell their long-time home in Tampa and move to a rental.

With all their children now independent, they wondered if they really needed such a large house for just the two of them.

With home prices having risen significantly, they thought about selling now to secure cash and living comfortably in a rental without the worries of repairs or maintenance.

On the surface, it sounds like a pretty good plan. However, when they crunched the numbers, it turned out to be more complicated than expected.

The Tampa housing market in 2026 is not experiencing the rapid price increases seen during the pandemic.

Recent data shows that the average home value is around $380,000, and prices have slightly decreased over the past year.

Rental prices are similar. The average rent in Tampa is about $1,900 per month, which has also seen a slight decline from last year.

What's important here is that the couple has already paid off their home.

If there's no mortgage, the monthly housing costs for keeping the home mainly consist of property taxes, insurance, repair costs, and maintenance fees.

However, the moment they sell their home and move to an apartment, they will incur a new monthly rent of nearly $2,000.

That adds up to $24,000 a year, or $240,000 over ten years, not accounting for potential rent increases during that time.

On the other hand, selling the house would provide them with a significant amount of cash.

For example, if they sell the house and, after deducting various costs, are left with $300,000, they could invest that money in savings, bonds, or stocks to generate returns.

Ultimately, they need to compare the costs of keeping the house with the investment returns from the cash obtained from selling it, along with the future rent payments.

This isn't just a financial decision. As they approach their 70s, managing a yard, fixing the roof, and calling someone every time the air conditioning breaks can become a source of stress.

Conversely, if they love their current home and plan to stay in Tampa for the next 5 to 10 years or more, there may be no compelling reason to sell.

This is especially true if they bought the house a long time ago, have no mortgage, and face relatively low property taxes.

Insurance costs are also a significant factor in Tampa.

With Florida homeowners' insurance rates having risen sharply, keeping an older single-family home can lead to burdensome costs for insurance, roofing, and major repairs like air conditioning.

Moving to a rental could help them avoid these unexpected large expenses.

They also need to consider taxes. If they have owned their home for a long time and its value has increased significantly, they should look into how much capital gains tax they might owe upon selling.

On the flip side, if they downsize to a smaller home within Tampa, they may want to check if they can transfer some of Florida's Save Our Homes benefits to the new property.

In the end, selling their home and moving to a rental after retirement is not necessarily a wise choice.

Especially if they have a home with no mortgage, they need to consider not just the "$380,000 they will gain" but also the fact that "they will have to pay rent for the rest of their lives."

Conversely, if managing the home becomes increasingly difficult and they want to travel more, the freedom that renting provides might be worth a little loss.

After retirement, deciding how they want to live for the next ten years may be more important than predicting how much home prices will rise.