How can I release and renew my DHCP lease from Terminal?

This can also be achieved with the following two commands :

sudo ipconfig set en0 BOOTP
sudo ipconfig set en0 DHCP

You can alias the two together in your bash profile:

alias renew="sudo ipconfig set en0 BOOTP && sudo ipconfig set en0 DHCP"

So then you just have one command called renew that will release and renew your DHCP.

The way the renew button works in System Preferences is to create a key in the system configuration. One can create the key via:

echo "add State:/Network/Interface/en0/RefreshConfiguration temporary" | sudo scutil

Swapping en0 for the desired interface.

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