Home Affordability in McAllen, TX
The median home price in McAllen is $175,000 with a median household income of $42,105. Housing is moderately affordable relative to local incomes.
Median Home Price
$175,000
Median Income
$42,105
Price-to-Income Ratio
4.2x
Est. Affordable Home
$164,000
Property Tax Rate
2.00%
Annual Property Tax
$3,500
Sales Tax Rate
8.25%
Cost of Living Index
78
Buying a Home in McAllen
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $42,105 in McAllen can afford a monthly housing payment of approximately $982. This translates to a home price of roughly $164,000, which is below the median home price of $175,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in McAllen would be approximately $3,500 per year ($292/month) at the effective rate of 2.00%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $5,250 | $169,750 | Yes |
| 5% | $8,750 | $166,250 | Yes |
| 10% | $17,500 | $157,500 | Yes |
| 20% | $35,000 | $140,000 | No |
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