Texas · 64th largest metro area

Buying a home in McAllen, Texas

In McAllen, the median value of owner-occupied homes is $190,400, Hidalgo County's effective property tax rate is 1.62%, a purchase mortgage carried a median $9,890 in total loan costs in 2025, and median gross rent is $1,049 a month.

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

McAllen home costs, fact by fact

About McAllen

McAllen is part of the McAllen-Edinburg-Mission, TX metro area, ranked 64th among US metro areas. Owners occupy 59.5% of homes, and median gross rent is $1,049 per month.

Reading the McAllen figures

McAllen turns the usual Texas arithmetic around. Rent is only $1,049 a month at the census median, below El Paso's $1,073, and well below Dallas's $1,472, and the HUD benchmark of $1,017 for its smaller-home tier is actually under the census figure. Its larger tier is $1,305. HUD's number is a federal reference point, not a market median, so its gap with the census figure is a reminder to compare sources carefully. Laredo shows $1,030. Edinburg shows $996. Wichita Falls shows $1,022, in the same band.

Owners value homes at $190,400, near Edinburg's $189,600 and in line with San Angelo's $187,600, yet far from the state figure of $318,100. Killeen reports $215,400, above. Lubbock reports $212,400, also above. Beaumont reports $166,400. Wichita Falls reports $156,800, below. Owners supplied the underlying values rather than buyers, so a home that sells may land differently.

Ownership is common, at 59.5% of households. That is close to Amarillo, where 59.7% own, and Laredo, where 64.1% own, and above Dallas (42.4%), Killeen (49.5%) or Lubbock (51.2%). El Paso has 60.8%. San Angelo has 61.2%. Both are slightly higher, which means McAllen is not an outlier on ownership even though its values are low.

What weighs on a purchase is the cost of the loan and the tax. Hidalgo County's 1.62% rate produces a median annual bill of $2,279, on a typical county home valued at $140,900. McAllen's own median value is above that county figure, so a typical purchase here would likely carry a larger bill than the county median suggests, although the assessed value of a specific home decides it.

Loan costs are heavier still. Lenders recorded 4,175 loans in 2025, with a median total cost of $9,890. The middle of the distribution ran from $6,838 to $13,213. For a home near $190,400, those costs can take a bigger bite than the yearly tax bill does, so asking for written estimates from several lenders is worthwhile before settling on one.

McAllen has 148,782 residents, a population that puts the loan-cost question in front of many households, close to Pasadena's 149,617. It belongs to the McAllen-Edinburg-Mission metro area, ranked 64th nationally with 914,820 people. Hidalgo County's median home value of $140,900 sits well below McAllen's own $190,400, so the county tax bill is a floor for the city. McAllen's census rent of $1,049 and a loan-cost median of $9,890 mean that a monthly renter and a first-time buyer face very different up-front outlays. The city lies in a single county, so the Hidalgo County figures apply throughout. A buyer comparing it with Laredo, which has 261,260 residents, should look at loan costs first.

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 McAllen

How much is property tax in McAllen?

Homeowners in Hidalgo County pay a median $2,279 a year in property tax, 1.62% of the county median home value of $140,900 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in McAllen?

Home-purchase mortgages in Hidalgo County carried median total loan costs of $9,890 in 2025; half of the 4,175 loans fell between $6,838 and $13,213 (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 McAllen?

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 McAllen?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in McAllen ($190,400) equals 15.1 years of the median gross rent ($1,049 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in McAllen?

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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Texas rules that apply in McAllen

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Sources

Texas · All states · Federal guides