The cost of buying vs. renting a home in all 50 states

GOBankingRates

Housing is the biggest expense for many Americans, accounting for more than 30 percent of a household’s yearly expenditures, according to the Bureau of Labor Statistics. But housing costs can vary greatly, depending on where you live — and whether you’re a renter or owner.

To find out where your housing dollar will go the furthest, GOBankingRates surveyed the cost of renting versus owning a home in all 50 states and the District of Columbia. The study found it’s more expensive to own a home in only eight states and the District of Columbia, with renting the more expensive option in 42 states.

“Mortgage rates have been near historic lows for quite some time now,” said Svenja Gudell, chief economist of real estate and rental marketplace Zillow. “This makes those monthly payments lower than monthly rent.”

With rents so high, though, it can be difficult to save up for a down payment and make the jump to homeownership, she said. If you’re considering becoming a homeowner, scroll down to find out if you should own or rent a home in your state.

See the full methodology at the bottom of this post.

Wyoming 

Renting vs. buying a home in Wyoming:

Monthly rent in Wyoming: $1,100
Monthly mortgage in Wyoming: $1,199

How much do you need to live comfortably in Wyoming? If you want to rent or buy a home, make sure you get a job that pays enough to cover a monthly rent or mortgage of around $1,000. But the good news: Wyoming might start experiencing declining home prices, according to an Arch Mortgage Insurance Company report released in April.

Vermont

Renting vs. buying a home in Vermont:

Monthly rent in Vermont: $1,500
Monthly mortgage in Vermont: $1,226

One of the best states for first-time homebuyers, Vermont's homes have become more affordable over the past year. The median sale price has dropped about 4 percent, according to the Vermont Realtors May 2016 report.

Only 13 percent of Vermont homeowners spend more than 50 percent of their income on housing, according to the Vermont Housing Finance Agency. However, 28 percent of renters spend half of their income or more on housing.

District of Columbia

Renting vs. buying a home in DC:

Monthly rent in the District of Columbia: $2,575
Monthly mortgage in the District of Columbia: $2,719

Even though it's cheaper to rent instead of buy in the nation’s capital, the National Association of Realtors identified Washington, D.C., as one of the top markets for aspiring millennials who want to buy a house. That’s because millennials' higher income levels are making it easier to afford a home.

To keep the cost of buying a home down, Gudell of Zillow recommends making sure your credit score is high so you can get a lower mortgage rate.