1st Advantage MortgageInvestors buying in McKinney, TX are measured on the rent the property earns. Locally, median gross rent is $1,901 and median real estate taxes are $7,791 a year, which together set how much loan a rent can carry.
What the numbers say about McKinney
The Census Bureau's 2020 to 2024 American Community Survey puts median gross rent in McKinney at $1,901, well above the Texas median of $1,403. Median home value sits at $471,800, which is well above the Texas median of $283,800. By the simple measure of annual rent over home value, McKinney sits at 4.8%, on the low side, so the payment, not the rent, usually decides whether a file clears. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Texas | McKinney | Difference |
|---|---|---|---|
| Tax as a share of home value | 1.49% | 1.65% | +11% |
| Household income, median | $78,476 | $124,215 | +58% |
| Typical owner-occupied value | $283,800 | $471,800 | +66% |
| Typical monthly rent | $1,403 | $1,901 | +35% |
| Persons per household | 2.69 | 2.82 | |
| Share in 2-4 unit buildings | 5.3% | 3.0% | -43% |
| Share of homes detached | 64.4% | 70.5% | +9% |
| Long commuters, 45 min plus | 16.9% | 19.0% | +13% |
| Workers on their own account | 10.5% | 8.6% | -17% |
| Renters paying 30%+ of income | 51.7% | 48.4% | -6% |
| Units sitting vacant | 9.4% | 4.6% | -51% |
| Typical construction year | 1992 | 2007 | |
| Annual rent divided by value | 5.9% | 4.8% | -18% |
| Households that rent | 37.4% | 36.2% | -3% |
| Residents (Census estimate) | 30,188,424 | 210,600 |
Roughly 36.2% of occupied housing in McKinney is rented, close to the Texas median of 37%. The median household brings in $124,215 (well above the Texas median of $78,476), with 48% of renters paying 30 percent or more of income toward rent.
Housing mix and age in McKinney
With 70% of units detached, McKinney is a single-family market first. Investors mostly buy houses, and the rent evidence comes from similar houses nearby. Median year built is 2007, which means newer stock, lower near-term repair risk and many properties inside associations.
The Census counts 5% of McKinney housing units as vacant, with a rental vacancy figure of 6.8%.
What stands out in McKinney
A gross yield of 4.8% means McKinney is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. Because homes here are relatively new, expect more subdivisions and associations than in older cities. With about 36% of households renting, McKinney has enough tenants to support investors without being dominated by them.
What costs can do to a McKinney ratio
Homeowners in McKinney paid a median $7,791 in real estate taxes, well above the Texas median of $4,232, an effective rate near 1.65% of home value against 1.49% statewide. Compared with annual median rent, the tax line is about 34%.
FEMA's National Risk Index (version 1.20, December 2025) rates Collin County as relatively high overall for natural hazard risk, with tornadoes (very high), hail (very high) and heat waves (relatively high) among its leading hazards.
| Hazard in Collin County, FEMA index | Level |
|---|---|
| Riverine flooding exposure | Relatively High |
| Heat waves exposure | Relatively High |
| Hail exposure | Very High |
| Tornadoes exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively High |
| Composite risk | Relatively High |
Insurance belongs in the ratio from day one, so get a landlord quote for the McKinney address and ask about roof age, wind or hail deductibles and flood cover.
A worked DSCR test for McKinney
For a rough fit test, treat $1,901 as the rent and $649 as the monthly tax. The payment cannot exceed $1,901 at a 1.00 ratio, so $1,252 is left after taxes for interest, principal, insurance and any association dues, shrinking to $872 if the lender wants 1.25.
Rules a McKinney landlord should check
This page does not claim to list every McKinney rental ordinance. Before you buy, call the city's planning or code office and Collin County to ask about rental registration, inspections and short-term rental permits, and read any association declaration. State tax treatment of short stays, as it applies to McKinney. Texas imposes a state hotel occupancy tax on rentals of 29 days or less, collected by the owner unless a booking platform collects for the owner, and cities, counties and special districts can add a separate local hotel tax that the owner must register for and remit.
On deposits, Texas law (Tex. Prop. Code §§ 92.103, 92.104, 92.107) says: No statutory cap. That figure belongs in your McKinney pro forma as cash you hold, never as rent. A McKinney landlord must handle the deposit within 30 days after move-out under Texas law. Entry to a tenant's unit is governed as follows: No statute; entry rules come from the lease.
Where McKinney sits among nearby places
Among the nearby markets above, Dallas has the lowest median home value at $320,700 and Frisco the highest at $642,100, against $471,800 in McKinney.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Dallas | 58% | $5,075 | $320,700 | 1,307,930 | $1,472 |
| Denton | 50% | $5,493 | $348,200 | 152,866 | $1,420 |
| Plano | 43% | $6,700 | $465,900 | 290,594 | $1,841 |
| Frisco | 34% | $9,572 | $642,100 | 219,304 | $2,014 |
| McKinney | 36% | $7,791 | $471,800 | 210,600 | $1,901 |
Tenants, jobs and anchors in McKinney
The self-employed share of the workforce is 8.6%, and those owners tend to be exactly the buyers DSCR financing was built for. Around the edges, government workers are about 11% of employment, 54% of adults hold a bachelor's degree or higher and 19% of commuters travel 45 minutes or more.
McKinney's principal employers for 2024 are given as Raytheon Intelligence & Space, McKinney Independent School District, Collin County, Globe Life and Encore Wire Corporation. Rental demand follows jobs, so a property within an easy commute of one of them has a natural tenant pool. Higher education in and around McKinney includes Collin College, Texas A&M University-Commerce, Texas Woman's University and University of Texas at Dallas, which feeds demand for student, staff and faculty housing near campus. Transportation links include air service through Dallas/Fort Worth International Airport and McKinney National Airport. Easy highway and air access helps both tenant commutes and remote ownership.
Before you make an offer in McKinney
Ready to test a McKinney deal? Use the calculator for the ratio, then start your application or send us the scenario.
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Where these facts come from
- For nightly stays in McKinney: Texas Comptroller, hotel occupancy tax
- Texas tax source: Hotel tax FAQ for short-term rentals
- 2020 to 2024 ACS data used for McKinney
- FEMA National Risk Index
- McKinney overview (Wikipedia)
- Tex. Prop. Code §§ 92.103, 92.104, 92.107, the Texas deposit law
All McKinney statistics are ACS five-year survey estimates from 2020 to 2024. For Texas tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Our check date is October 2026, so look for newer McKinney rules before you commit.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Which rent counts when I finance a McKinney property?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the McKinney median is $1,901.
How is the DSCR figure built for a McKinney property?
Every piece of PITIA is in the denominator. With $1,901 in rent, a 1.25 lender allows about $1,521, leaving $872 after median taxes of $649 a month.
How much real estate tax do McKinney homeowners pay a year?
The Census reports a median of $7,791 a year for McKinney owners, about 1.65% of median value against 1.49% for Texas. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Can nightly stays at a McKinney property support a DSCR file?
Often, with conditions: legal use under city and association rules, documented income and an insurance policy that covers guests. McKinney owners should check all three first.
What deposit rules apply to a TX rental?
Texas limits deposits this way: No statutory cap. Return is due within 30 days after the tenant leaves. The governing section is Tex. Prop. Code §§ 92.103, 92.104, 92.107.
What does FEMA say about hazard risk near McKinney?
The National Risk Index gives the county an overall relatively high rating. Use that as a prompt to get quotes, not as a verdict on one McKinney street.
Can a company be the borrower on a McKinney purchase?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in McKinney.