Whitley County has been ranked as the seventh best county in Kentucky to own a home, according to a new study.
“The decision to rent or buy a home can be a challenging one for anyone considering a move. A new study from financial technology company SmartAsset weighs in by determining which markets are most favorable for buyers. Whitley County ranks among the best places to own in Kentucky in the study, which compares rent and home prices in markets across the U.S.,” SmartAsset noted in a news release.
The SmartAsset study notes that the average monthly mortgage payment in Whitley County is $497 compared to the average monthly rent, which is $810.
The study lists the average home price in Whitley County as $116,454 and lists a breakeven point of 2.3 years.
“For each county, we calculated the breakeven point in the buy vs. rent decision — the point at which the total costs of renting become greater than the total costs of buying. The counties with the shortest amount of time needed to break even are the best places to own a home,” according to the study.
To find the best places to own a home, SmartAsset analyzed data on rent and home prices in counties across the U.S., and compared the financial advantages of buying or renting in each area.
Specifically, SmartAsset compared the total costs of buying and renting a three bedroom home in each county, for a household earning $100,000 a year. For the “rent” scenario, it measured the median monthly rent for a three bedroom home in each county. For the “buy” scenario, it used the following parameters: an annual 30 year fixed mortgage with an annual interest rate of 4.5 percent, closing costs of $2,000 and a down payment of 20 percent.
Hopkins county was listed as the number one county in Kentucky to buy a home with a 2.0 year breakeven point, according to the study. It was followed by the following counties in order: Rowan, Caldwell, Campbell, Bourbon, Muhlenberg, Whitley, Boyd, Madison, and Shelby.