Rent vs buy in McAllen, TX
The typical rent is $1,300 /mo, and the typical home is $226,801 in McAllen, Texas.
Over 7 years, renting comes out $8k ahead
With today's mortgage rate, 20% down, and McAllen's typical rent and home value. The break-even point is year 9.
Our clearly labeled opinion shows the math. These figures are estimates, not quotes. The stamp updates whenever a number changes.
- Renting leads by
- $8k after 7 years
- Break-even point
- In year 9 when owning catches up
- Actual ownership cost
- $2,195 /mo year 1, against $1,300 rent
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Is it cheaper to rent or buy in McAllen?
Across 7 years, renting saves $8,133 after counting the money returned to you when you sell. For the first 8 years, renting costs less. By year 9, owning catches up.
Renting. Owning. Net cost to date, by year.
McAllen average rent compared with the mortgage payment
Year 1 includes more than rent and a mortgage, based on McAllen's typical price. Here are all the monthly costs.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,300 | All of it, every month |
| Mortgage payment | $1,237 | $1,090 of it is interest in year 1 |
| Property tax | $327 | 1.73% of the value a year |
| Insurance | $126 | Census median for the city |
| Upkeep | $189 | 1% of the value a year |
| Owning, cash out | $1,878 | $147 of it builds equity |
| Lost return on the down payment | $369 | Annual earnings on that cash at 8.3% |
| Buying costs, spread out | $95 | 3.5% of the price over 7 years |
| True cost of owning | $2,195 | Take cash out, subtract the equity part and add the two lines above. |
The figures behind McAllen's result
- Typical home valueZillow ZHVI, September 2026
- $226,801
- Typical rentZillow ZORI, September 2026
- $1,300 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Texas, 1995 to 2025
- 4.7% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, McAllen
- 1.73% of value
- Home insuranceCensus ACS 2020-2024, McAllen
- $126 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would reverse the result in McAllen?
Each line shows where McAllen's 7-year verdict flips while everything else stays unchanged.
Renting comes out ahead when
- With annual home price growth below 5.1%, the rate used is 4.7%, Texas's long-run rate.
- A mortgage rate above 6.60% remains in place.
- For a home like this, monthly rent is less than $1,390. Here, the typical amount is $1,300.
- Your move comes before year 9.
Buying comes out ahead when
- Home prices rise by more than 5.1% a year.
- Today's rate is 7.24%, but you lock one below 6.60%.
- For the same home, your monthly rent would be over $1,390.
- You remain there for 9 years or more.
McAllen compared with the other 812 cities
| Measure | McAllen | Median city |
|---|---|---|
| Typical home value | $226,801 | $422,451 |
| Typical rent | $1,300 /mo | $1,837 /mo |
| Price-to-rent ratio | 14.5 (#650 of 813) | 18.5 |
| Home prices, last 10 years | 5.5% a year | 6.2% a year |
| Rents, last 5 years | 2.9% a year | 4% a year |
| Property tax | 1.73% | 0.87% |
| Households that rent | 41% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other cities across Texas
- Toss-up. Houston, TX. Renting leads by $2k.
- San Antonio, TX favors renting by $10k.
- Dallas, TX favors renting by $20k.
- Fort Worth, TX favors renting by $17k.
- Austin, TX favors renting by $111k.
- Arlington, TX favors renting by $34k.