The federal government's plan to let foreclosed homeowners rent their homes would benefit homeowners and communities, according to a new study from the Center for Economic and Policy Research.
Renting, the report says, is still cheaper than owning a home in most areas of the country.
"Ordinarily, the gap between owning and renting is not that large," said Dean Baker, co-director of the group and author of the report, The Gains from Right to Rent.
"Due to the enormous run-up in house prices over the housing bubble years, however, ownership costs now vastly exceed rental costs in many of the bubble markets."
The report tracks the costs of renting and owning before and after taxes in 100 of the country's largest metropolitan areas, including Tampa. The cost of mortgage payments, property taxes, insurance, maintenance costs and mortgage deductions are considered.
The monthly fair market rent in the Tampa-St. Petersburg-Clearwater area in 2009 averaged $946. That compares with ownership costs, ranging from $1,102 to $1,496.
Homeowners in markets, such as Florida, "have much to gain from having the opportunity to remain in a home as a renter following a foreclosure," Baker said.
Under the plan, lenders would allow foreclosed homeowners to stay in their homes for about five to 10 years. They would pay market-rate rent.
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