It’s been a long-held assumption that purchasing a home is a more financially wise decision than renting, if you can afford it. However, as evidenced by the past two years, such assumptions and predictable trends have all but vanished as we find ourselves in unprecedented territory in the housing market. While the super-low interest rates and plummeting housing prices seem to make a great case for buyers, more and more consumers are looking to rent or rent-to-buy opportunities. But evaluating such a scenario can be tricky.

So, generally speaking, when does it make sense to rent, and when to buy? We’ve listed five basic factors to help consumers decide:

1. Credit Score. For those with a less than perfect credit score, it’s now nearly impossible to secure a mortgage loan. In a rent-to-own scenario, renting can give those looking to build their credit history some time to do so while building equity. Conversely, those with a high credit score can now take advantage of the lowest interest rates since the 1950’s.

2. Cash Flow Needs. “Cash is King” rings especially true now, and those with immediate cash needs shouldn’t – and likely can’t afford to – front a large chunk of cash for a down payment. Rental rates on average are lower than a mortgage payment, which frees up cash to ensure other expenses are covered and credit isn’t damaged.

3. Employment Concerns. “Given the state of the job market right now, the anchor of full ownership is a heavy one,” says Forbes.com Real Estate columnist Matt Woolsey http://www.forbes.com/2009/03/02/renting-mortgage-property-lifestyle-real-estate_rent_to_buy.html?partner=email. Should one become unemployed and unable to make mortgage payments, not having to worry about potential credit damage and foreclosure is a big pro for the rent or rent-to-buy scenario.

4. The Flee Factor. For those who’ve recently relocated, or may want or need to move, locking into homeownership isn’t always ideal. Renting provides the luxury of scoping out new areas without the burden of having to sell a home in a depressed market (and avoiding a potential loss).

5. Market Unpredictability. Even in markets like Denver, which was recently named the No. 1 city on the verge of recovery from the real estate slump by Barbara Corcoran on NBC’s “Today” show, data is mixed on when the housing market will actually “recover.” As such, renting is appealing as a “wait-and-see” approach until the forecast clears.

“There are certainly cases for either option and the key is for each individual to educate themselves and make the best decision based on their own specific circumstances,” says Joyce Kelly, Owner of Denver Rent a Home. “We are here to educate buyers and sellers alike. There are some creative options available now that people may have not traditionally considered.”