# First-time buyer in 2026: the real all-in cost of owning

> The costs first-time buyers underestimate — and a simple rule to size your true monthly number.

_Buying · Marcus Reed · Updated Jun 16, 2026 · 10 min read_

**Quick answer:** Beyond the mortgage, taxes, insurance, and maintenance add roughly 30–50% to the true monthly cost of owning a home in 2026. A common rule of thumb is to budget about 1% of the home's value per year for maintenance.

## Key takeaways
- Taxes, insurance and upkeep can add 30–50% over the mortgage payment.
- Property taxes range 0.3%–2.2% of value per year, by state.
- Budget ~1% of home value annually for maintenance (the 1% rule).
- Home insurance is rising fast — budget $1,500–$4,000+ per year.

The mortgage is only part of the picture. Taxes, insurance, and maintenance can add 30–50% to your true monthly cost of owning in 2026.

- Property taxes: 0.3%–2.2% of value per year, wildly state-dependent.
- Insurance: rising fast — budget $1,500–$4,000+/yr.
- Maintenance (the 1% rule): set aside ~1% of home value per year.

_Reviewed against Rafter's methodology. Estimates are illustrative 2026 ranges; see https://raftercost.com/how-we-price._

Source: https://raftercost.com/insights/first-time-buyer-true-cost