Research / Rent vs. buy / Texas / McAllen

Rent or buy in McAllen?
Renting is $699 a month cheaper.

Renting the typical home in McAllen costs $699 less a month than owning it. Even counting equity and price growth, buying does not come out ahead of renting and investing the difference within 30 years under our baseline assumptions.

Updated September 26, 2026 · Zillow data for August 2026 · 7.03% mortgage rate (Freddie Mac, September 24, 2026) · Rank 143 of 340 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study

Monthly cost to own$1,982typical home, 20% down
Typical monthly rent$1,283Zillow, August 2026
Buying breaks even30+ years3.5% price growth
Cash needed to buy$52,685$229,066 home · 20% down + 3% closing
Income needed to own$79,279vs. $51,320 to rent · 30% rule

Where the monthly money goes.

The first-month cost of owning the typical McAllen home, split into its parts, against the typical rent. About $149 of the first mortgage payment is principal, which you keep as equity.

The median household income in McAllen is $61,579 (Census ACS 2020–2024). Owning the typical home would take 39% of it; renting would take 25%.

As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the McAllen-Edinburg-Mission, TX MSA area is $1,305 a month, still $677 below the cost of owning.

  • Mortgage principal & interest $1,223
  • Property tax $330
  • Home insurance $239
  • Maintenance $191

How long you would need to stay.

Net worth of a buyer compared with a renter who invests the down payment, closing costs and any monthly savings at 6% a year. Home values and rents grow 3.5% a year; selling costs 6%.

Change the assumptions

Buying vs. renting in McAllen, by years in the home
StayResult
3 yearsRenting ahead by $28,368
5 yearsRenting ahead by $34,019
7 yearsRenting ahead by $40,080
10 yearsRenting ahead by $49,983
15 yearsRenting ahead by $68,801
20 yearsRenting ahead by $90,674
30 yearsRenting ahead by $143,236

Rent or buy elsewhere in Texas.

Other large Texas cities in the study.

All cities
HoustonRenting $642/mo cheaperSan AntonioRenting $741/mo cheaperDallasRenting $938/mo cheaperAustinRenting $2,322/mo cheaperFort WorthRenting $872/mo cheaperEl PasoRenting $597/mo cheaperArlingtonRenting $1,089/mo cheaperCorpus ChristiRenting $491/mo cheaper

More on McAllen

See the full McAllen rental market profile with Census medians, or check how a typical rental performs for an investor in our cash-flow ranking.

How we calculated this

Price is the Zillow Home Value Index and rent the Zillow Observed Rent Index for McAllen. The cost of owning includes principal and interest at 7.03% with 20% down, property tax at the city's 1.73% effective rate (Census ACS), the Texas average homeowners premium (NAIC 2023) and 1% yearly maintenance. It leaves out income-tax effects, HOA dues and utilities. The typical rental may be smaller than the typical home for sale. Full methodology. This is a citywide estimate, not advice about a specific home.