Rent vs. Own: A $260,000 Las Vegas Townhome
Paying $2,000 a month in rent? See the full monthly cost of owning a $260,000 townhome with a small down payment, and how much of it you'd keep.
The example
A lot of renters in Las Vegas ask my team and me at the Las Vegas Realty Team the same thing: if I'm already paying $2,000 a month, what would it cost to own? Here's a real side-by-side using a $260,000 townhome.
- Price: $260,000
- Down payment: 3.5%, which is $9,100
- Loan: 30-year fixed FHA loan at a 7.5% interest rate (7.58% APR)
- HOA dues: $205 a month
- Property taxes: $1,012 a year, about $84 a month
- Homeowner's insurance: $50 a month
- Rent for a comparable townhome: $2,000 a month
Run my own numbers with us
Month one, side by side
Interest and FHA mortgage insurance: $1,711 Taxes, insurance and HOA: $339 Pays down your loan: $189 Rent: $2,000
Here's the owner's full monthly payment, line by line:
- Principal and interest: $1,785
- FHA mortgage insurance: $115
- Property taxes: $84
- Homeowner's insurance: $50
- HOA dues: $205
- Total: $2,239 a month
That's $239 more than rent. But $189 of the first payment goes to paying down your loan, and that part stays yours. Take it out, and owning costs about $2,050 a month, roughly $50 more than renting. Every month after that, a little more of the payment goes to your loan and a little less to interest.
Five years later
Your equity in the townhome (what it's worth minus what you owe), if its value stays at $260,000. A renter builds $0.
After five years in this example:
- Renting: you've paid $120,000 in rent and own nothing.
- Owning: you've paid about $134,362 in monthly payments, your loan is down to about $241,550, and you have about $18,450 in equity, counting your down payment.
Year by year, your equity would be about $7,063 after year 1, $9,599 after year 2, $12,332 after year 3, $15,277 after year 4 and $18,450 after year 5. This assumes the home is worth the same $260,000 the whole time. If its value goes up, your equity grows faster. If it goes down, your equity shrinks.
What these numbers leave out
- Closing costs. Buyers usually pay some, and a seller may agree to help. Our 2026 Las Vegas buyer strategy plan covers what to ask a seller for.
- Repairs and upkeep. As an owner, these are yours. Your HOA may cover some outside items, so read what it includes.
- Rent increases. This example keeps rent at $2,000 for all five years. Your principal and interest payment on a fixed-rate loan stays the same. Taxes, insurance and HOA dues can change.
- Taxes. Owning can change your income taxes. Ask a tax professional how it applies to you.
New to buying? Start with our first-time buyer guide and how we help you buy.
Loan details for this example
Example only, not a loan offer. Purchase price $260,000 with a 3.5% down payment of $9,100. FHA 30-year fixed-rate loan of $255,291, which includes the 1.75% upfront FHA mortgage insurance premium added to the loan. Interest rate 7.5%, 7.58% APR. 360 monthly principal and interest payments of $1,785. Monthly FHA mortgage insurance of about $115, plus property taxes, homeowner's insurance and HOA dues, are added to the monthly payment. Rates, APR and terms change daily and depend on your credit and the loan program; subject to credit approval. We're not lenders, so get your own numbers from a licensed loan officer. This is general information, not financial, tax or legal advice.
Want your own numbers?
Every home, HOA and loan is different. Tell us the price range and area you're looking at, and we'll run a side-by-side for you and introduce you to a lender for your exact payment. Contact us or call 702-582-5788. You can also browse our listings.
Frequently Asked Questions
Is it cheaper to rent or own a townhome in Las Vegas?
In this example, owning a $260,000 townhome with 3.5% down costs about $2,239 a month, compared with $2,000 rent. About $189 of the first payment pays down the loan, so the cost difference is closer to $50 a month, and the owner builds equity.
How much do I need for a down payment on a $260,000 townhome?
With an FHA loan, the minimum down payment is 3.5%, which is $9,100 on a $260,000 home. Closing costs are extra, though a seller may agree to help with them.
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