{
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  "name": "What is a good price-to-rent ratio for buying a home?",
  "description": "A price-to-rent ratio below 15 generally favours buying, 15–20 is a toss-up, and above 20 favours renting. Calculate it as home price ÷ annual rent for a comparable home: $420,000 ÷ ($2,200 × 12) = 15.9.",
  "url": "https://www.revenuelab.fyi/answers/what-is-a-good-price-to-rent-ratio",
  "dateModified": "2026-10-01",
  "creator": {
    "@type": "Organization",
    "name": "RevenueLab",
    "url": "https://www.revenuelab.fyi"
  },
  "license": "https://creativecommons.org/licenses/by/4.0/",
  "keywords": [
    "Price-to-Rent Ratio Calculator",
    "Rent vs Buy Net Worth Calculator"
  ],
  "distribution": {
    "@type": "DataDownload",
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  "json": {
    "type": "answer",
    "question": "What is a good price-to-rent ratio for buying a home?",
    "shortAnswer": "A price-to-rent ratio below 15 generally favours buying, 15–20 is a toss-up, and above 20 favours renting. Calculate it as home price ÷ annual rent for a comparable home: $420,000 ÷ ($2,200 × 12) = 15.9.",
    "tableTitle": "Price-to-rent bands",
    "columns": [
      "Ratio",
      "Signal",
      "Example"
    ],
    "rows": [
      {
        "label": "Under 15",
        "value": "Lean buy",
        "note": "$240,000 house, $1,650 rent → 12.1"
      },
      {
        "label": "15–20",
        "value": "Toss-up",
        "note": "$420,000 house, $2,200 rent → 15.9"
      },
      {
        "label": "Over 20",
        "value": "Lean rent",
        "note": "$1,100,000 condo, $3,800 rent → 24.1"
      }
    ],
    "context": "The bands are a screening rule popularised by Trulia's rent-vs-buy index. They ignore mortgage rates: at 6.5%, the effective toss-up zone shifts lower than it was at 3% rates, so treat 15–20 as a prompt to run a full net-worth comparison rather than a verdict.",
    "methodology": "P/R = price ÷ (monthly rent × 12), using rent for the same size and location of home. Example prices are illustrative, not quotes.",
    "dateModified": "2026-10-01",
    "relatedCalculators": [
      {
        "label": "Price-to-Rent Ratio Calculator",
        "to": "/price-to-rent-ratio-calculator"
      },
      {
        "label": "Rent vs Buy Net Worth Calculator",
        "to": "/rent-vs-buy-net-worth-calculator"
      }
    ],
    "relatedReading": [
      {
        "label": "How to calculate rent vs buy",
        "to": "/answers/how-to-calculate-rent-vs-buy"
      }
    ]
  }
}