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Rent vs Sell Calculator: Should I Sell My House or Rent It Out?

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Should I Rent or Sell My House? Run the Numbers

Fill in three short steps. Your results appear right after the last one, with a chart and the numbers for every year.

Step 1 of 3

Your property
Monthly mortgage paymentNo mortgage entered

Principal and interest, figured from your original mortgage, rate and term.

Estimates only. This calculator is general information, not tax, legal or investment advice, and its results depend on the numbers you enter. Talk with a tax professional about your own sale. Use of this calculator is subject to our Terms of Service.

Turning your home into a rental

Converting Your Primary Residence to a Rental Property

Moving out doesn't mean you have to sell. A house you rent out can pay its own mortgage, build equity and keep growing in value, while a sale gives you cash today and ends the upkeep. The right answer depends on your numbers, not a rule of thumb.

Two rules change the math. Renting a Florida homestead for more than 30 days a year, two years in a row, ends its homestead exemption, so the property tax bill can rise (Florida Statute 196.061). And a tax-free sale of your home has a deadline: you must have lived there 2 of the 5 years before you sell.

Quick answer

What are the pros and cons of renting out your house?

Renting out your house brings monthly income and long-term equity while a tenant helps pay the loan. The costs are landlord duties, unless a property manager takes them on, and possible tax changes such as losing the homestead exemption.

  • Monthly Income: Rent can cover the mortgage, taxes and insurance, and any surplus is yours every month.
  • Long-Term Equity: Your tenant helps pay down the loan while the house keeps its chance to gain value.
  • Landlord Duties: Repairs, vacancies and tenant calls become your job, unless a property manager takes them on.
  • Tax Changes: You can lose the homestead exemption, and the tax-free sale if you rent for too long.
Selling costs

Seller Closing Costs in Florida, Before You Decide

A sale has its own price tag. Count these costs before you compare selling with renting:

  • Agent Commission

    Your listing agreement sets the commission, and it is often the largest cost of a sale.

  • Documentary Stamp Tax

    Florida taxes the deed at 70 cents per $100 of the price in most counties (Florida Statute 201.02).

  • Title and Closing Fees

    Title work, settlement fees and recording costs come out of your proceeds at closing.

  • Mortgage Payoff

    Your lender is paid in full at closing, plus any prepayment penalty your loan carries.

The calculator starts with selling costs of 7% of the price. Change it under More options to match your own quote.

Capital gains

Capital Gains Tax on Rental Property vs Your Home

Selling your home and selling a rental are taxed differently. Florida has no state income tax, so federal rules decide what you owe.

A rental's gain is taxed at long-term rates of 0%, 15% or 20% for most owners who held it more than a year, and the part of the gain that came from depreciation is taxed at up to 25%. Your own home can skip most of that tax under the Section 121 exclusion.

Quick answer

What is the Section 121 exclusion on a home sale?

Section 121 of the tax code lets you sell your main home tax-free on up to $250,000 of gain, or $500,000 for a married couple filing jointly, if you owned and lived in it for at least 2 of the 5 years before the sale.

  • Up to $250,000 Tax-Free: A single filer can exclude up to $250,000 of gain on the sale of a main home, and a married couple filing jointly up to $500,000.
  • The 2-of-5 Test: You must have owned the home and lived in it for at least 2 of the 5 years before the sale.
  • Once Every 2 Years: You generally can't use it if you excluded the gain on another home in the 2 years before.
  • Depreciation Not Covered: Gain from depreciation you claimed while renting stays taxable, even when the rest is excluded.

Not sure what your house would rent for? Start with a free rent estimate.

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Free proposal

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Decided to rent? Tell us about your house and we'll send a free proposal showing how we'd market it, screen the tenant and protect your rent.

Want to know what the property can rent for first? Get a Rent Estimate.

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FAQs

Rent vs Sell House FAQs

How much does it cost to sell a house?

Most sellers pay the agent's commission, title and closing fees, any repairs the buyer asks for and the payoff of the mortgage. In Florida, the deed also carries a documentary stamp tax of 70 cents per $100 of the price in most counties. Add the costs up from your own quotes, because commissions and fees vary from sale to sale. Our calculator starts at 7% of the price, and you can change it.

What is depreciation recapture on a rental property?

While you rent a property out, you can deduct depreciation each year, which lowers your taxable rental income. When you sell, the part of your gain that came from that depreciation is taxed at a rate of up to 25%. Moving back in doesn't erase it: gain equal to depreciation claimed after May 6, 1997, can't be excluded under Section 121.

Can Royalty Concierge Services manage my house if I decide to rent it?

Yes. Royalty Concierge Services manages single-family homes, condos and multifamily rentals across Miami-Dade, Broward and Palm Beach, for owners who live nearby, in other states or in other countries. We list your house on the MLS, screen every applicant with 13 checks, collect the rent, handle repairs with your approval and inspect the home in person on a regular basis. You get a clear statement every month and no hidden fees.

How do you calculate home appreciation?

Multiply today's value by one plus the yearly appreciation rate, once for each year. At 5% a year, a $400,000 house would be worth about $420,000 after one year and about $510,500 after five, if that rate held. Real prices don't rise in a straight line, so treat the rate as an assumption you can change.

How much will my house be worth in 5 years?

No one can know for sure, because local prices rise and fall with rates, demand and the economy. You can estimate it: enter your home's value and an appreciation rate in the calculator, and it shows the value for every year you keep it. For today's market value, ask a licensed real estate professional for a comparative market analysis.

What is the 2 out of 5 year rule for selling a home?

It's the test for the federal home-sale exclusion. You must have owned the home and used it as your main home for at least 24 months of the 5 years before the sale, and the months don't have to be in a row. If you lived in the house for the 2 years right before you moved out and then rent it, you generally have up to 3 years to sell and still pass the test.

How does Royalty Concierge Services estimate what my house will rent for?

We compare your house with similar rentals nearby, the local market comps, and weigh its size, condition and location. The estimate is free and carries no obligation, so you can put a real rent into the calculator before you decide.

Should I sell my rental property or keep it?

Keep it if the rent covers your costs, the area is still growing and the work is handled, by you or a property manager. Sell it if the cash flow is negative, a major repair is coming or you need the money for a better investment. Run both choices through the calculator: it shows which leaves you with more wealth over the years you choose.