Buy or Rent Near Texas A&M? 4-Year Math

Are you deciding whether to buy or rent near Texas A&M for the next four years? You are not alone. Many Aggie parents and grad students weigh the same question every season. The smart move is to let the numbers lead. In this guide, you will learn a clear, College Station specific framework to compare four years of renting versus owning, including taxes, HOA, maintenance, vacancy, resale costs, and post‑graduation rental options. Let’s dive in.

College Station market realities

College Station runs on an academic calendar. Demand for rentals peaks in late summer, and most turnover clusters around graduation and semester breaks. That timing affects achievable rent, lease length, and vacancy risk if you target student tenants.

Investors and Aggie families actively buy near campus. Inventory and pricing close to Texas A&M often look different from citywide averages because smaller homes and student oriented floor plans are common. That means your inputs for rent and resale need to be pulled from very local comps rather than broad averages.

Texas has no state income tax, but property taxes are a major holding cost. Always verify the effective tax rate for a specific parcel on the Brazos County Appraisal District site. Local rules may also apply to leasing and short term rentals, so review the City of College Station website before you buy.

What to include in your 4-year math

Account for every cash flow and balance sheet item during the 48 month horizon.

• One time purchase costs: budget 2–5 percent of the purchase price for buyer closing costs. Confirm with your lender and title company.
• One time sale costs: when selling, plan for typical broker commissions around 5–6 percent of the sale price plus routine closing charges. Texas does not have a state transfer tax.
• Mortgage payments: include principal and interest. Interest is larger in the first years of the loan.
• Property taxes: pull the exact rate and estimated annual tax from BCAD.
• Insurance and HOA or POA dues: use current quotes and the actual dues for the property.
• Maintenance and repairs: a helpful baseline is the 1 percent rule, setting aside about 1 percent of the purchase price per year. Adjust up for older homes or student heavy use.
• Vacancy allowance: for student rentals in college towns, many owners model 1–2 months per year to cover re leasing gaps and turn costs. Use local vacancy data when available.
• Property management: full service management commonly runs 8–12 percent of monthly rent plus a leasing fee that is often half to one month of rent. Self management can reduce fees but increases your time commitment and risk.
• Utilities: include owner paid utilities during vacancy. If you plan to include some utilities in rent, model that as a recurring expense.
• Taxes on financing and sale: the mortgage interest deduction only helps if you itemize. Property tax deductibility may be limited by the federal SALT cap. If you sell after living in the home at least two years within the five years before sale, review the IRS residence exclusion rules in Publication 523.
• Opportunity cost: your down payment could be invested elsewhere. Include a reasonable expected return on that cash when you compare renting versus owning.
• Appreciation: do not pick a single number. Test a range from negative to positive growth. Four year outcomes are sensitive to appreciation and mortgage rates.

Step by step: build your break even worksheet

Use a simple spreadsheet so you can change assumptions quickly.

1. Pull local inputs

• Market price and comp rents near campus from sources like Zillow Research or the Redfin Data Center, then narrow to your block level comps.
• Property tax estimate from BCAD.
• Current mortgage rate from the Freddie Mac Primary Mortgage Market Survey.

2. Enter purchase details

• Price, down payment, loan type, interest rate, term, buyer closing costs percentage.

3. Model monthly ownership costs

• Principal and interest payment, property tax, insurance, HOA, maintenance reserve, utilities during vacancy.

4. Set rent and vacancy assumptions

• Monthly market rent, months of vacancy per year, management fee percentage and leasing fee if applicable, rent increases per lease cycle.

5. Add sale assumptions

• Selling cost percentage, appreciation scenarios, and outstanding mortgage balance at month 48.

6. Apply the core formulas

• Net sale proceeds: Sale price minus selling costs minus outstanding mortgage principal.
• Owner total net cost over 4 years: All cash out during holding plus purchase closing costs minus net sale proceeds minus any tax benefits.
• Rent total net cost over 4 years: All rent payments plus renters insurance and utilities you pay, adjusted for any investment return from not buying.

7. Run scenarios

• Appreciation cases, vacancy from 0 to 2 months per year, management fee from 0 to 12 percent, and different down payments to see PMI effects.

8. Decide with the break even test

• If the owner total net cost is less than or equal to the rent total net cost in your likely scenario, buying wins on a cash basis for four years. If not, renting may be the more practical choice.

Scenarios to test around Texas A&M

Owner occupant student for four years

• You live in the home for the full period and sell after graduation. Vacancy risk is low, and you may qualify for the IRS two out of five years residence exclusion on sale. Read the rules in Publication 523.

Parent buyer, student occupant, sell after four years

• The parent is on title but does not live there. The primary residence exclusion usually does not apply, and gain may be taxable. Model selling costs carefully because four year holding periods are short.

Grad student converts to rental after graduation

• You live in the home during school, then rent it out. Once it becomes a rental, depreciation deductions begin and will be subject to recapture at sale. Keep detailed records and confirm your eligibility for the two out of five years residence rule in Publication 523.

Investor buy to rent to students from day one

• Treat the property as a rental from the start. Include rent, vacancy, maintenance, management, and capital reserves. Lease on the academic calendar and model a leasing fee each cycle.

What usually tips the scale in four years

A four year horizon is short for real estate. Up front closing costs and interest heavy early mortgage payments often tilt the math toward renting unless appreciation, tax benefits, or strong post graduation rent performance offset those costs. Your mortgage rate is a key swing factor, so track current trends with the Freddie Mac PMMS.

Appreciation is uncertain. Run a low, flat, and moderate growth case rather than betting on one outcome. Opportunity cost matters too. If a large down payment would otherwise be invested, include that trade off in your comparison.

Plan for post graduation rentals

If you keep the property, decide how you will manage it.

• Self manage: you save fees but take on leasing, screening, maintenance, and compliance. Student rentals require clear house rules and quick response times.
• Hire a local manager: full service often costs 8–12 percent of monthly rent plus a leasing fee. You gain tenant screening, enforcement, vendor coordination, and local compliance support.
• Lease structure choices: 9 to 12 month academic leases are common. Furnished rentals can command higher rent but may turn more often and cost more to maintain.

Review landlord obligations under the Texas Property Code and check the City of College Station for current rental rules or registrations. Fair housing laws apply to screening and advertising. Budget for 1–2 months of vacancy per year, plus turn costs like cleaning and touch ups between tenants.

Where to pull reliable local numbers

• Property taxes and assessed values: Brazos County Appraisal District.
• Home price and inventory trends: Zillow Research and the Redfin Data Center.
• Rent levels and trends: RentCafe rent trends or Zillow rent data via Zillow Research.
• Mortgage rate benchmarks: Freddie Mac Primary Mortgage Market Survey.
• Local vacancy and tenure patterns: U.S. Census American Community Survey.
• Sale tax rules and residence exclusion: IRS Publication 523.

Quick checklist

• Gather hyper local comps near campus for both rent and resale.
• Pull the parcel’s actual tax rate and estimate from BCAD.
• Choose two or three down payment options to test.
• Use a maintenance reserve of at least 1 percent of price per year.
• Budget 1–2 months of vacancy and a leasing fee if you plan to rent.
• Run appreciation scenarios from negative to moderate growth.
• Verify whether the IRS residence exclusion could apply to your situation.
• Decide on self management or a professional manager and price that choice.

Ready to run the numbers with a local team?

If you want a clear, local view of buy versus rent near Texas A&M, we are here to help. Our team lives the Aggieland calendar, works daily with student rentals, and provides bilingual guidance for families and investors. Get a personalized four year analysis and, if buying makes sense, a plan for turnkey property management after graduation. Connect with Lisa Cadena Craig to start your College Station game plan today. Help Me Buy / Help Me Sell.

FAQs

How do property taxes affect four year ownership in College Station?

• In Texas, property taxes are a major annual cost, so you should pull the exact rate and estimate for the specific parcel from the Brazos County Appraisal District and include it in your annual cash flow.

What is the IRS two out of five years rule and why does it matter?

• If you live in the home as your main residence for at least two of the five years before sale, you may exclude up to set limits of gain, so review IRS Publication 523 to see whether you qualify.

How much vacancy should I budget for a student oriented rental?

• Many owners model 1–2 months per year to cover the academic calendar turnover and re leasing, then they adjust based on location, pre leasing success, and management approach.

Which mortgage rate should I use for my model today?

• Use a current benchmark from the Freddie Mac Primary Mortgage Market Survey and confirm a quoted rate with your lender based on your loan type and credit.

Are there local rules on short term or student rentals near Texas A&M?

• Check current rental and nuisance rules with the City of College Station and follow landlord obligations in the Texas Property Code when screening and leasing.