The middle rowhouse at 207 Clay St. in Annapolis is for sale or for rent. (Courtesy of HouseLens Inc.)

In this market, there are many factors to consider when deciding whether to rent or buy a home. We decided to look at a rowhouse in Annapolis that is currently listed for rent and for sale.

This two-bedroom, two-bathroom rowhouse at 207 Clay St. in Annapolis is listed for sale at $324,900 and for rent at  $1,750 a month.

The house was constructed in 1900 and is in Brickyard Hill — three blocks from the Annapolis Football Stadium and a short distance to the downtown Annapolis city dock area.  It is near dining, shopping and entertainment. The house has a  front porch and wood floors throughout the main level. The back patio offers an ideal space for outdoor entertaining.

This is a very basic calculation to give people who are weighing the decision of buying or renting a comparison of monthly costs. Anyone considering a home purchase should talk to a lender who can tell them what their mortgage options would be with their specific financial situation.

Your personal financial situation will effect the interest rate available to you. The lower the interest rate, the lower your mortgage payment will be. So it is best to call a lender to know what will make financial sense for you.

Our calculation, from Realtor.comis based on a buyer making a 20 percent down payment of $64,980 and with a 30-year fixed-rate mortgage at the rate of 3.875 percent. Taxes, condo fees and an estimated insurance premium are included in the calculation. The tax benefits of buying are not included. Anyone considering buying a home should consult a tax expert for this data.

In this case, with this interest rate and down payment, it looks like buying the home offers a lower monthly cost. If you don’t know if you are going to be in the area longer than a year, then renting might make more sense for you.

Here’s the breakdown:

Sales price: $324,900

Monthly principal and interest: $1,222

Monthly taxes:  $343

Monthly home owners insurance: $91

Estimated monthly costs when buying: $1,657

Monthly rent:  $1,750

A rent or buy calculator at is another tool to help in understanding if a home purchase or renting a home makes financial sense for you. There are many factors you need to take into account, including how long you would plan on keeping the home.

This also does not take into account, the tax benefit of buying a home and that these monthly payments are going toward a home that you will be able to sell down the road rather than having the rent dollars not go toward an investment in your financial future.

Read Nancy Simmons Starrs’s previous columns:

Rent or buy — running the numbers on a D.C. condo

Renting vs. buying — crunching the  numbers on two D.C. condos

Renting from an apartment management group vs. an individual owner 

Walkability vs. affordability

How to save money on rent — so you can buy a house

Living large in a small rental

How to find a rental long distance

Finding a short-term rental on a budget

Searching for a pet-free rental — it’s a jungle out there

The pros and cons of renting a basement apartment

How to stay within budget in the expensive D.C. rental market

Tips on finding a pet-friendly rental

How to land a great rental in the competitive D.C. market