Rent vs buy in Allen, TX
In Allen, Texas, the typical rent is $1,734 /mo and the typical home is $487,619.
Renting comes out ahead by $108k over 7 years.
Using 20% down, today's mortgage rate, and Allen's typical rent and home value. No break-even point occurs within 30 years.
An opinion with the math shown and a clear label. These are estimates, not quotes. Change any number, and the stamp will change with it.
- Renting leads by
- $108k after 7 years
- Break-even point
- 30 years or more owning never catches up sooner
- Actual cost of owning
- $4,623 /mo year 1, against $1,734 rent
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Is it cheaper to rent or buy in Allen?
Across 7 years, renting costs $108,247 less, including the money returned to you when you sell. In every year shown, renting's net cost remains below owning's, and owning never catches up within 30 years.
Rent. Buy. Net cost to date for each year.
Allen's average rent compared with its mortgage payment
Rent and the mortgage don't tell the whole story. At Allen's typical price, these are all monthly costs in year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,734 | All of it, every month |
| Mortgage payment | $2,658 | $2,343 of it is interest in year 1 |
| Property tax | $687 | 1.69% of the value a year |
| Insurance | $191 | Census median for the city |
| Upkeep | $406 | 1% of the value a year |
| Owning, cash out | $3,943 | $315 of it builds equity |
| Lost return on the down payment | $793 | The yearly return on that cash, at 8.3% |
| Buying costs, spread out | $203 | 3.5% of the price over 7 years |
| True cost of owning | $4,623 | Cash out minus the equity portion, plus the two lines above |
Numbers behind the verdict for Allen
- Typical home value from Zillow ZHVI, September 2026
- $487,619
- Typical rent from Zillow ZORI, September 2026
- $1,734 /mo
- Down payment: 20% avoids private mortgage insurance, and the engine doesn't model it.
- 20%
- Rate for the mortgage: Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- The FHFA index for house prices, Texas, 1995 to 2025 measures home price growth.
- 4.7% each year
- Rent growth: CPI primary residence rent, yearly growth 2006 to 2026
- 3.5% each year
- Return on savings: 60% S&P 500 with dividends plus 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% each year
- Property taxData: Census ACS 2020-2024, Allen
- 1.69% of the value
- Home insuranceData: Census ACS 2020-2024, Allen
- $191 /mo
- Maintenance costsFannie Mae, low end of 1% to 4%
- Each year, 1% of the value
- Buying costs: Freddie Mac, midpoint of 2% to 5%
- 3.5% of the purchase price
- Sale costsAgent commission plus closing costs
- 6% of the price
What could change the result in Allen?
Each line marks the threshold that changes the 7-year verdict in Allen. Everything else stays as it is.
Renting comes out ahead when
- If home prices increase by less than 7.3% a year, this condition is met. Texas's long-run rate, 4.7%, is the figure we use.
- This condition applies when the mortgage rate remains above 3.24%.
- For a home like this, monthly rent is under $2,890, compared with the typical local rent of $1,734.
- If you move at any time during the next 30 years, owning won't catch up with these figures.
Buying comes out ahead when
- Home prices rise by more than 7.3% each year.
- You secure a mortgage rate under 3.24%, compared with today's rate of 7.24%.
- Renting that same home would cost over $2,890 each month.
How Allen compares with the other 812 cities
| Measure | Allen | Median city |
|---|---|---|
| Typical home value | $487,619 | $422,451 |
| Typical rent | $1,734 /mo | $1,837 /mo |
| Price-to-rent ratio | 23.4 (#195 of 813) | 18.5 |
| Home prices, last 10 years | 4.5% a year | 6.2% a year |
| Rents, last 5 years | 1.4% a year | 4% a year |
| Property tax | 1.69% | 0.87% |
| Households that rent | 31% | 42% |
Sources: Zillow ZHVI, ZORI, Census ACS 2020-2024.
Other Texas cities
- Toss-up. Houston, TX. Too close to call, but renting leads by $2k.
- Rent. San Antonio, TX. Ahead by $10k for renting.
- Rent. Dallas, TX. Renting is ahead by $20k.
- Rent. Fort Worth, TX. Renting is ahead by $17k.
- Rent. Austin, TX. Renting is ahead by $111k.
- Rent wins. Arlington, TX. The difference is $34k in renting's favor.