Rent or Buy in Melbourne?
In 2026, the median home price in Melbourne is $310,000 and average rent is $1,563. Let's run the numbers.
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Market Analysis: Melbourne
The Verdict for 2026
Based on the price-to-rent ratio of 6.1%, buying could be a solid move in Melbourne if you plan to stay for at least 5-7 years. Rents are high enough that locking in a mortgage payment might save you money over time.
Key Market Data
- Median Home Price: $310,000 (as of 2025-11-30)
- Average Rent: $1,563/month
- Homes Sold: 98 per month
- Days on Market: 62 days median
Financial Calculators for Melbourne, Florida
Use our specialized calculators to make informed decisions about buying in Melbourne, Florida.
Frequently Asked Questions
Is Melbourne a good place to buy a house in 2026?
Yes, Melbourne can be a strong buy market. With a price-to-rent ratio of 6.1%, monthly rents are high enough that locking in a mortgage payment makes financial sense if you plan to stay 5+ years. The median home price of $310,000 offers good value compared to rental costs.
How much do you need to earn to buy a home in Melbourne?
Based on the median home price of $310,000, you'll typically need an annual household income of $1042K-$1339K to qualify for a mortgage (using the 28/36 rule). With a 20% down payment ($62K), your monthly payment would be approximately $1,447 at current interest rates.
What are the hidden costs of buying in Melbourne?
Beyond your mortgage, budget for property taxes (typically 1-2% of home value annually in Florida), homeowners insurance ($1,200-$2,500/year), maintenance (1-2% of home value annually), HOA fees if applicable, and closing costs (1.5% when buying, 6% when selling). Our calculator above factors in all these costs for an accurate comparison.
How long until buying pays off in Melbourne?
The break-even point in Melbourne typically ranges from 5-7 years, depending on your down payment, interest rate, and how long you stay. Use our calculator above with your specific numbers to find your exact break-even year. Factors like Melbourne's projected 3-4% annual appreciation rate and $1,563/month average rent significantly impact this timeline.
Should I rent or buy in Melbourne if I'm only staying 2-3 years?
For short stays of 2-3 years, renting is almost always the better financial choice in Melbourne. Closing costs when buying (1.5%) and selling (6%) mean you'll spend roughly $23K just on transaction fees. You'd need significant home appreciation to offset these costs in such a short timeframe. Renting preserves your flexibility and avoids these upfront expenses.