With 30-year fixed mortgage interest rates still hovering at a favorable 4.17 percent, many wonder when buying a home becomes cheaper than renting. Zillow recently released its latest Breakeven Horizon report, which pinpoints the amount of time (in years) the costs of renting exceed the costs of buying throughout the largest U.S. cities.

In Chicago, the median breakeven horizon is just two years. Essentially, it takes 24 months for you to start spending more on rent than you would a home purchase, with all factors – including the down payment – considered. Chicago’s Breakeven Horizon is based on a median rent of $1,650 per month and median home value of $206,809, so keep in mind that not everyone breaks even in this exact time frame.

The notable gap between a monthly mortgage payment and monthly rent is one reason buying a home is the better deal. The mortgage payment estimate on a median-priced home in Chicago at the current interest rate average (4.17%) is $1,011.26 per month – including principal, interest and taxes. Compared to Chicago’s median rent of $1,650 per month, average Chicago mortgages cost approximately $638 less than the median rent.

Buying a home is the clear financial winner from a monthly savings standpoint alone. Generally, you’ll pay less per month buying a home in Chicago compared to the monthly cost of renting an apartment in Chicago.

Other costs of homeownership

Mortgage payments aren’t the only cost associated with buying a home, though. That’s why the Breakeven Horizon is two years instead of a few hours. There’s also the down payment, closing costs, insurance, taxes, utilities and maintenance fees to consider. Fortunately, Chicago home values are appreciating, helping to offset these additional expenses sooner.

Zillow expects Chicago home values to grow 3.44 percent over the next year. Because home values in Chicago are rising, it doesn’t take a whole lot of time for homeowners to build enough equity to earn back money spent. That includes the initial down payment, which on the median-priced home, comes out to $41,341.80 (20 percent).

Nationally, the Breakeven Horizon is 1 year and 11 months, which puts Chicago right on par with the countrywide average. However, the national average rose approximately 20 days from last year. Meanwhile, Chicago’s Breakeven Horizon dropped .09 percent (33 days) from one year ago. Based on the current real estate market, Chicago home buyers can expect to break even about a month faster than last year.

Compared to other large cities like Los Angeles, where the Breakeven Horizon is 4.1 years, or San Francisco at 4.5 years, buying a home in Chicago is both reasonable and strategic.

“Young workers face a lot of hurdles on the way to homeownership, including saving for a down payment in the first place and deciding where and when to settle down,” Zillow Chief Economist, Svenja Gudell, said in a statement. “The latest Breakeven Horizon gives young people another data point to consider when they’re making this important financial decision.”

Are you ready to start saving and reaping the financial benefits of homeownership? Check out Chicago homes for sale to get a better idea of where you want to put down roots.