Texas · Dallas-Fort Worth-Arlington, TX metro area

Buying a home in Allen, Texas

In Allen, the median value of owner-occupied homes is $464,100, Collin County's effective property tax rate is 1.58%, a purchase mortgage carried a median $8,398 in total loan costs in 2025, and median gross rent is $1,932 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Allen home costs, fact by fact

About Allen

HUD sets the county Fair Market Rent for a two-bedroom at $1,807, while median gross rent in Allen is $1,932 a month.

Reading the Allen figures

Allen is a high-value city even by Texas standards. Owners estimate $464,100, against a state median of $318,100 and Dallas at $320,700. Among the other covered cities, Plano is nearly level, with $465,900, while McKinney sits just above, with $471,800. Frisco is much higher, at $642,100, then Austin at $555,300. Richardson comes in at $431,400, Georgetown at $429,100, both below Allen. With 113,746 residents, Allen is smaller than Plano's 293,286 or McKinney's 227,526, but it belongs to the Dallas-Fort Worth-Arlington metro area, which ranks 4th nationally.

The owner share is 69.4%, so most households here own. Plano shows 56.9% and McKinney 63.8%, both below Allen, while Austin, at 43.4%, is far lower, as is Dallas. Only Sugar Land, with 80.3%, League City, with 74.7%, and The Woodlands, with 72.5%, are higher. Allen therefore reads as an owner-occupied city, a point that matters to buyers who expect to resell to other owners and to renters thinking of switching. Rent is $1,932 a month. That tops Plano, where renters pay $1,841, as well as McKinney ($1,901) and Richardson. Frisco is the exception, with $2,014. Georgetown is lower, with $1,795, and Round Rock lower again, with $1,763. HUD's benchmark for a smaller home in the area is $1,807, below the census rent here, and its larger-home benchmark is $2,275. Because HUD's figure is a benchmark and not a market median, treat that gap with caution.

The county tax is the heavy item. Collin County's effective rate is 1.58%, which comes to $7,521 a year, with the county median home valued at $475,600. That annual bill is a major part of ownership cost, and it belongs beside any mortgage payment when you compare Allen with Dallas or Austin. Loan costs also sit on the high side. Lenders in Collin County reported 16,816 loans in 2025, a deep pool of data, and the median loan cost there is $8,398. The middle range of borrowers paid from $5,772 to $12,382, so a quote near either end tells you something about the file. A median home at the county figure carries a tax bill that many buyers would want to see in the monthly budget before choosing a price. Ask a lender early what closing costs to expect, and ask the county what a specific house will pay in tax. Allen's city value of $464,100 is a little below the county median of $475,600, so the county tax figure is a fair first guide for this city. Lewisville is lower in value, with $378,500, as is Carrollton, with $381,000, yet Allen's rent is above both, so renting here does not mean paying less than in those cities.

Calculate for Texas

If you buy

Texas state transfer tax

Texas has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$318,100
State transfer tax$0
Share of the price—

Default price: the Texas median value of owner-occupied homes, $318,100 (Census ACS 2025). Rule: No transfer tax exists. Buyers pay county recording fees and a state-set title insurance premium. Who pays: No transfer tax to assign. Recording fees and the title insurance premium appear on the closing statement. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Texas transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Texas state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Allen

How much is property tax in Allen?

Homeowners in Collin County pay a median $7,521 a year in property tax, 1.58% of the county median home value of $475,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Allen?

Home-purchase mortgages in Collin County carried median total loan costs of $8,398 in 2025; half of the 16,816 loans fell between $5,772 and $12,382 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Allen?

Texas has no real estate transfer tax. Article VIII, Section 29 of the Texas Constitution, added November 3, 2015, says no law enacted after January 1, 2016 may impose a transfer tax on a transaction that conveys fee simple title to real property.

Is it cheaper to rent or buy in Allen?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Allen ($464,100) equals 20 years of the median gross rent ($1,932 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Allen?

Across Texas, the main hazards for home insurance are flood, tornado, wind and hail, and the insurer of last resort is Texas FAIR Plan Association (TFPA). Texas gets more tornadoes than any other state, according to the Texas Department of Insurance; on the coast, windstorm coverage comes from a separate policy, often from TWIA, in 14 coastal counties plus part of Harris County.

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Sources

Texas · All states · Federal guides