Important question: how much do you cook? Do you do stir fry, real fry, or cook hamburgers, etc. on the stove? Or, more simply, how often do you set off your smoke alarm with stuff on the stove top? If you do any of the above more than 2x a year, you should definitely go with a vent hood.

For looks, the vent hood is the better choice. I don't love the looks where the MW ends up, but, upon reflection, right there next to the 'fridge is probably very practical. [Take out whatever, nuke it, eat it standing over the sink, put dish in dishwasher, rinse hands, go. How practical is that? All you need to do it put the silverware drawer over there and you've really got it beat. Have teenagers?]

Really, no one you know has a vent hood? Wow. We had one once before MWs were invented, but that was a while ago. Wish we had somewhere to put the MW besides OTR, but we just don't. Bummers. We set off the smoke alarm so often we disabled it.

My personal preference given your layout would be a third choice; an undercabinet hood and separate MW. I stay away from hood/MW combos because
- the hood portion supposedly are not as effective as a standalone
- if someone wants to use the MW while I'm cooking, especially if it's at a range where I've got the oven under the burners, there's just too much conflict with 2 (or 3) people wanting to be in the same place at the same time.

Re: the vent hood as you drew it - there are exceptions, but I mostly don't like the look.

Much prefer the hood. (option 2). Perhaps you can put the MW under the counter to the right of the sink or in the island. What about a MW Drawer?

OTR micros are basically useless as vent hoods. They also die with some frequency, and are difficult and pricey to replace, while you can stick a regular countertop micro on a shelf somewhere and replace it for a song when you need to.

I would only recommend an OTR microwave in a tiny kitchen.

I would go for the range hood.

Yes, I'm pretty much stuck with an OTR in my kitchen (very small and I can't vent so a hood would just be a lie), but if you have the option to do real external venting, by all means the hood.

Another vote for a vent hood and separate microwave.

Rather than an expensive micro cabinet, you could do a shorter regular cabinet there, and a separate shelf below with a countertop microwave. (Your carpenter can probably build the shelf, or there are plenty of styles available at IKEA.)

Since budget is a concern, you have to be reasonable in your choice of vent hood--but there are choices at various price points.

I vote for a vent hood and separate microwave. Like Janet above says, hoods can be had for reasonable prices.

We have an OTR microwave BUT we have a very small kitchen, where cabinet space and countertop space are at a premium.

Thanks for the wonderful feedback so far. The point about a micro hood being more effective in a small kitchen is good info. Current kitchen is a 9' galley. I had not considered effectiveness in the new, larger space.

DH cooks 5-7 nights weekly. Smoke alarm rarely goes off. He might do burgers on the stove 3x a month & still no smoke alarm.

I think I know someone with a hood that fits under a cabinet, but no one with a "chimney" type hood like pictured above.

Micro location -- we originally drew the micro on the right of the sink, next to the corner cab. But neglected to think that the micro cab (or shelf) would protrude further than the corner cab. Also, micros generally hinge on left so should be on right of sink. So, it moved next to the fridge which is deeper also. DH 110% not interested in a lower micro & I'm not thrilled with that look either.

kat makes a valid point about someone using the micro while the chef is cooking. Doesn't happen in current kitchen due to (a) small size (b) young kids (one parent in kitchen, one with kids) so I hadn't thought about 5+ years down the road...

So, talk to me about price points for stainless hoods (similar to design in pic). Yes, I'll check the appliances forum too. At local box stores I was told $500 for low end and up to $1500-$2000+. Total for new hood/micro would be $700 min. Contrast this to new OTR micro/hood combo for $200...I know, I know, not right for the space, just a pill I don't want to swallow.

No one wants to propose a different design, huh? You all vote for vent hood based on function and aesthetics?

Nice kitchen, Edition. :) For both multiple practical considerations, as well as aesthetic, these days microwaves are usually only set over the stove when placing them elsewhere would require unacceptable sacrifice, i.e., most often space-crunched kitchens, although also here and there by a few who'd had them, liked them, and kept them. It's not awful and it does work...okay, but mostly it's just something that was done a lot for a while when builders typically "designed" the kitchens instead of the cooks.

I would go with a free standing range hood for aesthetic purposes. The micro/hood looks completely out of place there and will hurt the overall look of the kitchen. To keep costs reasonable you can purchase a re-circulating free standing range so it's not necessary to incur the vent out duct work cost

Here is a link that might be useful: Kitchen Cabinet Kings

i lived with OTR MW all my life till this remodel, We now have a vent hood and I can't say enough about how much I love it....both for function and aesthetics. I am in the buy a cheapo countertop MW that you can stick on a shelf or make look built in and get a hood. Keep an eye out on craigslist for a deal if need be but I'd definitely budget for a vent hood. You can find inexpensive ones for around $500 but I can't speak to effectiveness. If you can, budget for 1K even if it means putting in the duct work and electric and waiting for the hood.

Another resounding vote for the hood, on aesthetic grounds as well as for effective ventilation. If you do not need a large microwave, might you fit one on a shelf in your pantry?

Swell kitchen plan, by the way.

As someone who currently has an OTR and *IS* 5+ years down the road from when we put it in with small kids that didn't use it at the time, I can say that it WILL become an issue when they're older. My son is now 10 and he does use it and it's a huge pain in the rear. Not only is he perfectly capable of using it but he has to lift anything WAY up and over the stove to put it in and then reach UP to push the buttons. I'm always nervous he'll spill whatever he's heating and then I'll have a huge mess on the stove. And if I'm cooking on the stove, he's not allowed to use it at all, which makes him feel "little". My six year old has no issues yet. But if the microwave was lower, I guarantee, she'd be perfectly able to heat some things by herself now, which would be very convenient for me! LOL!

The door gets in the way if one of us is cooking and the other needs to access it. The venting is nonexistent. I hate hate hate that we can still smell a hearty meal in the house the next day. I'd NEVER put one in another kitchen unless I absolutely had to.

IMO, your kitchen has plenty of room to have the microwave elsewhere, so that's my vote. In our build, we're putting a microwave drawer in our island. It's more convenient for everyone and out of the main view as well.

Kobe makes an undercounter hood that is 2" tall.

Samsung makes a OTR microwave that has 400 CFMs. I have seen hoods that only vent out 400 CFMs. I would love to know the difference between 300 and 400 CFMS if the venting is going out of the house. Most models have 300 CFMS. I would not buy a microwave that does not vent outside for the purposes of the stovetop.

If this is a long-term home and you had an ah-ah-moment when you saw the drawing with the vent hood and a seperate MW by the fridge makes more sense then I think the extra $$$ might be worth it. If you amortize the extra cost over say 10-15 or 20 years it isn't very much.
In this case I think practicality, aesthetics and reality overrule budget. Three out of four for the vent hood - a slam dunk.
Try craigs list for vent hoods and Sears warehouse dent sales for MW.
Occasionally we all go for those ah-ah moments. We did (or DH did) for our pendant lights which blew our lighting budget and it was worth it.

Definitely not the OTR. I think it looks odd with nothing on its sides. Would you panel that?

And babs is spot on about kids (or even clumsy adults) spilling hot things or leaning over a stove.

blfenton is correct. This is a place to put money in aesthetics. You'll be much happier with the appearance and the functionality of getting real ventilation.

My ILs have an OTR they put in 11 years ago. Every time I visit them, they are complaining about how poorly it sucks air out.

Hood.

I'm also redoing a galley kitchen and am not a big cook. But I've been insistent on avoiding a OTR microwave all along precisely because it's such a small kitchen. Right now our microwave is on a shelf above our sink and it's totally annoying - to me, putting it above the range in a kitchen where space is tight is a real safety hazard. I'm not getting a super powerful professional range and I don't have a true hood right now, so I'm likely to get a hood with relatively modest venting power - that helpfully also keeps the costs down, as the real money seems to come with high suction and fancy designs (eg those gorgeous barrel hoods with copper trim, etc.) Try looking around on ventingdirect.com and searsoutlet.com - you'll be surprised what you find. Also Ikea has chimney hoods, and is currently having a kitchen sale. Good luck!

I recently put in a Wolf cooktop and oven and added a real venting under the cabinet exhaust, where before I had a blow in your face recirculating useless fan thing. It is not the same as a hood, but still, I am in love with it. I love my fancy Wolf stuff, but the very nice and very functional Broan vent is really just almost even better. I suffer with a very visible duct over my cabinet tops, but I care not. I would die before having an OTRM.

Check out Costco.com for a hood, remember if there is a problem they have the best return policy.

This is a very belated THANK YOU for everyone's helpful comments.

I truly appreciate the real-life advice.