SANTA CRUZ — Renters of single-family residences pay more than their landlord’s monthly mortgage payment in 43 of 50 major U.S. cities, according to a recent study from Moneypenny.

Moneypenny, a virtual call and chat management service for real estate companies, released results in January for a study on median rent prices in 50 of the most populated cities in the U.S. Rent price data spans from July 2014 to July 2019 and was collected from online real estate company Zillow. Erica Prush, a researcher and project coordinator for the study, said it is important for renters to know what they’re paying compared to their landlord’s monthly mortgage because the renters can use it to best determine what type of living situation will suit their financial goals and needs.

Of the 50 cities studied, tenants in only seven cities pay less than the monthly mortgage payment. In 28 of the studied cities, tenants pay more than 150% of their landlord’s mortgage for a single-family residence. Landlords may be charging less for rent than their mortgage payments in cities that may not have a “hot market” and need to secure a tenant quickly, Prush said. When a landlord breaks even, he/she is covering most of the bills associated with the property but could not be making money off of it, according to Prush. One reason for charging more than their monthly mortgage is because landlords and property owners need to cover unforeseen expenses, repairs and maintenance, she said.

The three cities in which renters of single-family residences pay the most of their landlord’s monthly mortgage payment are Miami/Fort Lauderdale (304% of a $720 monthly mortgage payment), New York (276% of a $1,165 monthly payment) and Riverside (231% of an $823 monthly payment), according to the study. The three cities in which home renters pay the least of their landlord’s monthly mortgage are New Orleans (49% of a $2,857 monthly mortgage payment), Richmond (57% of a $2,260 monthly payment) and Kansas City (82% of a $1,285 monthly payment).

While cities in Santa Cruz County were not included in the study, Prush was able to calculate data for the cities of Santa Cruz and Watsonville after the study was released.

“Many residents of U.S. cities such as Santa Cruz experience a high cost of living,” Prush said. “It was important for our team to dive into the numbers and make it clear just how much renting can cost, especially looking at it compared to a mortgage, so that potential homebuyers can make an informed decision.”

Renters in Santa Cruz pay nearly 94% of their landlord’s monthly mortgage payment, according to Prush. The average monthly mortgage payment is about $3,174 and the median price for renting a single-family home in the city is about $2,978, according to the study. While Santa Cruz landlords may raise their rents in the future, now would be a good time to rent a home — compared to other cities in the study — because it is rare to find rent less than the monthly mortgage payment, Prush said. It would also be a good time to buy a home because rent prices are close to the mortgage payments and because more homes are expected to be on the market during the spring, she said.

In Watsonville, single-family home renters are paying nearly 132% of their landlord’s monthly mortgage payment of about $2,601 per month, according to the study. The median rent price for a single-family home in Watsonville is about $3,423. This data was acquired from February 2017 to December 2019, according to Prush.

For local comparison, renters in San Jose are paying 194% of a monthly mortgage payment of $1,905, according to the study. In San Francisco, renters are paying 220% of a monthly mortgage payment of $1,466.

In conducting this study, Moneypenny calculated the seasonally-adjusted median monthly mortgage payment by collecting the median sale price of homes within these cities and then compared the two figures. In calculating the mortgage payments, Moneypenny used a 30-year fixed mortgage plan with a 4% interest rate and a down payment of 6%.

To see the full report, visit moneypenny.com.