If you are weighing the rent or buy decision in Denton County Texas you have come to the right place. Denton County TX contains a variety of homes to rent or buy. There are options for single family rentals, apartment developments, and plenty of single-family homes for purchase in the Denton County area.

How Much Does it Cost to Rent in Denton County TX?

Looking at fourth quarter 2017 closed single-family leases in Denton County Texas, here are the average rents paid:

  • 2-bedroom 2-bath – $1605 per month
  • 3-bedroom, 2-bath – $1718 per month
  • 4-bedroom, 2 bath – $1857 per month
  • 4-bedroom, 3 bath – $2416 per month

The good news for prospective Denton County TX home buyers or renters is the fact that Denton County real estate is more affordable than the city of Dallas. You can find 1-bedroom apartments in Denton County below $1000 per month. 2-bedroom apartment rents in Denton County are below the Dallas median, with most developments below $1400 per month.

How Much Does It Cost to Buy in Denton County TX?

Here’s what home buyers paid on average for purchasing a Denton County TX home in December 2017:

  • 2-bedroom, 2-bath – $261,923 (average of 1642 square feet)
  • 3-bedroom, 2-bath – $259,130 (average of 1897 square feet)
  • 4-bedroom, 2-bath – $285,243 (average of 2411 square feet)
  • 4-bedroom, 3-bath – $414,933 (average of 3115 square feet)

To see how much the purchase cost compares to the monthly rental rates shown above, let’s take that 3-bedroom, 2-bath home price and crunch some numbers. Assuming you put 20 percent down on that 3-bedroom Denton County home with a mortgage rate of 4 percent, this is general estimate of the monthly payment.

  • $990 – Principal and Interest on $207,304 mortgage (assuming 20% down payment, 4.00% 30-yr fixed)
  • $539 – property taxes based on $6478 annual bill and a property tax rate of 2.5%
  • $100 – hazard insurance
  • $ 50 – homeowners association dues based on $600 annual bill
  • $ 75 – miscellaneous repairs
  • $1754 – Total Estimated Monthly Expense for Ownership

If you strip out the allowance for miscellaneous repairs, the cost of buying a 3-bedroom Denton County home is slightly less than the cost of renting, at roughly $1679 per month. Accounting for unexpected repairs and expenses, renting looks to be the more compelling option. The rapid increase in home prices seen in the DFW area during the past 5 years has certainly affected the equation, diminishing the affordability of homes for purchase. Home price inflation has exceeded rent inflation in most DFW housing markets in recent years. I have also looked at the rent vs buy picture for Dallas TX. Depending on who you are asking, the rent vs buy equation will likely bring up some interesting conversation.

Note! Third party aggregator sites often publish rent or buy calculations using flawed methodology.  It’s important to look at the methodology or assumptions used. If you can’t see all of the underlying assumptions or methodology, the results aren’t very useful. Many real estate websites attempt to make buying a home look more affordable than it really is, particularly if they are in the business of selling ads to Realtors.

I would encourage any prospective home buyer or renter to do their own research and crunch the numbers, paying particular attention to the property tax obligations for local homes. While Texas does not have a state income tax, we do have property tax rates which can be more than double the national average. New itemized deduction limits in 2018 affecting property taxes could diminish the advantages of owning a home, particularly more expensive luxury properties.

Real estate is always local, so it pays to do your own research and decide what’s best for you and your budget.  If you have a good down payment and solid credit you could be better off purchasing a Denton County home rather than renting. The decision to rent or buy is not always as easy as some people make it seem. It often boils down to personal choice. To see what’s available in the local Denton County real estate market call or email today.