If we are talking a truly tiny home (250sqft or less), I would spend a significant amount to avoid that and it seems like only minimal savings if your numbers are correct (but I question your interest rate, and your depreciation), but if it is a lifestyle that would truly work for you, it may be worth it.
It seems like there might be additional savings, but also additional costs that you haven't considered. Insurance (compared to whatever you pay now for a renter's policy, if you have one? Lower utilities for a smaller space? Hook ups to get the tiny home up and running? Would you be temped to eat out more? Would you spend more money going out or entertaining outside your home? Do you feel extremely confident you'd actually stick it out for 5 years in a tiny house? That might be my biggest concern. If you do this and absolutely hate it and can only stick it out 2 years, you'll have nearly the same depreciation numbers but with less than half the rental savings. It's a fairly extreme lifestyle to commit to longer term, so just make sure you are being honest with yourself about whether this will be sustainable (without making you miserable, because misery surely isn't worth less than $1000/yr).
Could you find a used tiny home (or Trailer you can park)? If they are really only $30k used, that seems a much smarter route and would make your numbers look much better. Start shopping now, especially if you can stay month to month in your current place, and then move when you find a cheaper used option. If you buy for $30k instead of $60k (and can sell for maybe $20-25k), suddenly your savings are in the 5 figures instead of 4.