12 cities: Where to rent vs. buy

11 of 13

Memphis, Tenn.: Rent

Median home price: $174,300

Median annual rent: $8,500

Price-to-rent ratio: 20

Real estate markets in this city on the Mississippi maintained a good balance all through the boom-and-bust cycle that many other cities experienced. Home prices here never got crazy and have fallen little during the recession.

Rents are very low in Memphis, with the median price for a two-bedroom home listed on Trulia coming in at $710. So, even though home prices are reasonable, under $175,000, the math still favors the cheap rents.

NEXT: Jacksonville, Fla.: Buy

Last updated January 25 2011: 8:31 AM ET

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