Homeownership Pays

It's better to buy than rent in Rutherford County

It makes more sense financially to buy a house than to rent in Rutherford County, according to a study recently released by the National Low Income Housing Coalition (NLIHC) and the Center for Economic and Policy Research (CEPR).

The study shows that a family in Rutherford County can expect to spend about the same amount of money each month to own a home as they would to rent. But home owners can anticipate building a nest egg of equity ranging from $23,982 to $26,567 if they stay in the home for just four years.

"This study supports that buying a home in Rutherford County is a wise choice for long-term financial security," said James Averwater, president of the Rutherford County Home Builders Association in Murfreesboro. "With today's near-record low interest rates, affordable prices and great selection of homes on the market to choose from, there has never been a better time to invest in a home and your family's future."

Home owners who have fixed-rate mortgages are also protected from rent increases, and can more easily budget for long-term housing expenses. For example, according to data from the Department of Housing and Urban Development (HUD), the Fair Market Rent (FMR) for a two-bedroom unit in Rutherford County rose from $630 in 2000 to $723 in 2008. Most homeowners also have a financial advantage over renters by being able to deduct mortgage interest and other eligible expenses from their taxes every year.

The study used data from the Census Bureau's American Community Survey and the HUD's Fiscal Year 2008 FMR for its calculations. More information can be found on the NLIHC (www.nlihc.org) and CEPR (www.cepr.net) Web sites.

Not only is buying a home a good move for a family's future, but they get to live in a brand new, energy-efficient home with features that suit their lifestyle.

To find out about home buying opportunities in Rutherford County, go to: www.RCHBA.com.

The Rutherford County Home Builders Association is a non-profit trade association of residential contractors, suppliers, and others associated with the home building industry.