7 Best Areas for Investment Properties in McKinney, TX

I get the same question from investors every month: where in McKinney does a rental actually make sense? The honest answer is that McKinney is not a cash flow market for most single family homes in 2026. Prices are high relative to rents, property taxes run around 1.7% of value inside the city before any PID or MUD, and investors don't get the homestead exemption. You can still do well here, but you have to buy for the right reason and in the right pocket of the city.

This guide covers seven areas I'd actually look at, what each one costs to buy, what it rents for when I could verify it, and the tax and HOA details that change the math. I show my cap rate arithmetic with every assumption written out, so you can swap in your own numbers. Where I couldn't verify a rent or a price, I say so instead of guessing.

One more thing before we start. A McKinney mailing address does not always mean City of McKinney taxes or McKinney ISD schools. Some of the cheapest "McKinney" homes in this guide are actually in Lowry Crossing or Princeton city limits, and parts of west McKinney are zoned to Frisco ISD or Prosper ISD. That matters for taxes, tenant demand, and resale. If you're new to the city, start with my guide to moving to McKinney and come back here.

The Short Version: 7 Areas at a Glance

Medians for Eldorado Heights, Westridge, Simpson Crossing, and Eastridge come from my NTREIS MLS pull of closed sales over the 12 months ending October 28, 2026. For context, Redfin put McKinney's citywide median sale price at $511,000 for August 2026.

How I Ran the Numbers

Cap rate is net operating income divided by purchase price. It ignores your mortgage, so it tells you how the property performs on its own. Here are the assumptions I used for every example below. None of these are facts about a specific house. Change them to match your quote sheet.

• Purchase price: the area's 12 month median sale price from my MLS pull.
• Rent: verified listing rents where I found them; otherwise Rentometer's January 2026 McKinney median for a 3 bedroom house, $2,300 a month.
• Vacancy: 5% of gross rent.
• Property management: 8% of gross rent.
• Maintenance and capital reserves: 8% of gross rent.
• Insurance: $3,000 a year. This is a placeholder. Get a real quote, because Texas premiums vary a lot by roof age and deductible.
• Property tax: the 2026 adopted rates from the Collin County Tax Assessor, applied to the full purchase price with no homestead exemption, since an investor can't claim one.
• PID and HOA: the figures shown for each area.

The McKinney ISD rate of 1.0664 per $100 includes a portion that depends on the voter approved tax rate election on November 3, 2026. If that fails, the district rate drops to about 1.0347, which would lift each cap rate below by a small amount.

The 7 Best Areas for Investment Properties in McKinney

1. Eldorado Heights and West McKinney Resale

Median home price: $419,000 (75 closed sales, about $192 per square foot, built 1995 to 2003)

Best for: investors who want a boring, dependable long term rental with no PID or MUD

Eldorado Heights sits south of Eldorado Parkway and north of McKinney Ranch Parkway, straddling Lake Forest Drive. It's inside the City of McKinney, the HOA runs about $350 to $400 a year, and I found no MUD or PID. Lease listings in 2026 showed about $2,100 to $2,395 a month for homes of roughly 1,743 to 2,280 square feet.

Tenants like this area for a simple reason: SH 121 at Hardin Boulevard is about 6 minutes away, and Legacy West was about 20 minutes in a midafternoon Google Maps check on October 28, 2026. That commute matters to the renters who can afford $2,200 or more a month. Homes from the late 1990s will need roofs, HVAC, and water heaters on your watch, so budget the reserve line seriously. My full breakdown is on my Eldorado Heights page.

2. Westridge

Median home price: $436,000 (223 closed sales in 12 months, built 2003 to 2020)

Best for: investors who want tenants that pick a house for the school district

Westridge has a McKinney address, but the southern and older sections are Frisco ISD and the northern and newer sections are Prosper ISD. That school assignment is the whole pitch. Families who want Frisco ISD or Prosper ISD and can't buy yet will rent here. Homes.com's local guide showed a median rent of $2,595 around August 2026, but its boundary includes part of 75035, so treat that as a ceiling, not a promise.

The catch is taxes. A Frisco ISD section runs about 1.66% for 2026 with city, county, and college included. Prosper ISD's rate was 1.2141 for 2025, which pushes those sections higher. Sub association dues mostly run about $600 to $1,060 a year. D.R. Horton was still selling new Westridge Townhomes from about $404K in October 2026, which gives you a newer, lower maintenance option inside Prosper ISD.

3. Craig Ranch Townhomes

Median home price: $508,000 for all of Craig Ranch (157 closed sales); Hemmingway townhome listings ran about $330K to $370K in 2026

Best for: investors who want a lower entry price near SH 121 and don't want a yard to manage

Craig Ranch is the master planned area around TPC Craig Ranch, home of THE CJ CUP Byron Nelson. Most of it is Frisco ISD, and the east side is Allen ISD. I found no MUD or PID. The townhomes are the investor angle here because the single family homes are priced well above what rents support.

Watch two costs. Hemmingway at Craig Ranch townhomes carry HOA dues of about $339 a month, which eats a big chunk of rent. Craig Ranch also has a community enhancement fee the seller pays at resale: 0.25% of the first $300,000 plus 0.5% of the amount above that, per a 2023 report. That's roughly $1,750 on a $500K sale. I didn't verify Craig Ranch townhome rents, so pull rent comps before you write an offer.

4. Simpson Crossing (Lowry Crossing, McKinney 75069 Address)

Median home price: $346,609 (82 closed sales, about $154 per square foot, built 2024 to 2025)

Best for: investors who want a new home with builder warranties at a lower price, and who accept a PID

Simpson Crossing is a Meritage community just south of US 380 on the east side. The mailing address says McKinney, but it's in the City of Lowry Crossing, which means a much lower city tax rate (0.160953 for 2026) than McKinney's 0.412284. Schools are McKinney ISD per listings, but check the district's locator for current zoning.

Then the PID. The Simpson Road PID runs about $3,430 to $4,610 a year per lot for 2026 to 2027, depending on lot width and improvement area, and the bond installments run into the 2050s. Two 2026 lease listings showed $2,200 for 1,605 square feet and $3,000 for 2,337 square feet. HOA dues are about $700 a year. New homes mean few repairs early, but you're also competing with other new homes for tenants while the area builds out.

5. Eastridge (Princeton City Limits, McKinney 75071 Address)

Median home price: $325,990 (63 closed sales, about $153 per square foot); new homes from about $259K

Best for: the lowest entry price with a McKinney address

Eastridge is a Green Brick community with Meritage and Trophy Signature Homes building. It's in the City of Princeton, so the 2026 city rate is 0.472959, higher than McKinney's. Reports say it's served by McKinney ISD, but confirm the district on Collin CAD for the specific lot. HOA is about $780 a year.

The PID on Improvement Area 4 lots runs about $2,256 to $2,527 a year net of a TIRZ offset. Other improvement areas have different amounts, so get the exact figure for the lot you're buying. I couldn't verify Eastridge rents, so my example uses the citywide 3 bedroom median. For more on this side of town, see up and coming areas in McKinney.

6. Near the Collin College McKinney Campus

Median home price: not measured for this area

Best for: smaller homes and room by room leasing where the HOA allows it

Collin College has three McKinney locations: the McKinney Campus at 2200 W. University Drive (its original campus), the Collin Higher Education Center at 3452 Spur 399, and the Public Safety Training Center at 3600 Redbud Boulevard. Students and staff create steady demand for smaller, cheaper rentals in central McKinney along University Drive and US 75.

I don't have a clean median price or rent for this pocket, and I'm not going to invent one. If you want to target it, I'll pull recent closed sales and leases within a set radius of the campus. Older homes here are more likely to have no HOA at all, which gives you more freedom on lease terms.

7. East McKinney Near Downtown and the Airport

Median home price: varies widely by street

Best for: a long hold where you're betting on what's being built nearby

Two things are changing east McKinney. TUPPS Brewery opened its new campus at 402 E. Louisiana Street in 2024 in the old grain silos, and McKinney National Airport begins commercial service with Avelo Airlines on November 11, 2026. Its new 46,000 square foot terminal has four gates, expandable to six.

That's an appreciation story, not a cash flow story. Prices east of US 75 range from small older homes to restored historic houses well above the city median. Check flight paths before you buy near the airport, because noise affects tenants and resale. Also know that McKinney's historic home tax exemption program requires the owner to live in the home, so a rental won't qualify.

Cap Rate Examples With My Assumptions

This table applies the assumptions above. The numbers are my arithmetic, not quotes, and they're before any mortgage payment.

Inputs: Simpson Crossing uses a $4,000 PID estimate, and Eastridge uses a $2,400 PID estimate with the citywide 3 bedroom median rent.

A 3% cap rate with mortgage rates where they've been means negative monthly cash flow on a normal down payment. Investors who buy in McKinney anyway usually have one of three reasons: they're paying cash or putting a lot down, they expect appreciation and principal paydown to carry the return, or they're keeping a former primary home as a rental. Know which one you are before you buy. As a loan officer, I can run the financed version with real rates so you see the monthly number, not just the cap rate.

Why Trinity Falls Isn't on This List

Trinity Falls is a well run master planned community, but the investor math is hard. It's outside the City of McKinney tax jurisdiction and pays McKinney MUD No. 1 instead, which was $0.9847 per $100 for 2025. Combined with 2026 school, county, and college rates, that's about 2.28% before HOA. On the $555,000 median, taxes alone are around $12,675 a year with no homestead exemption. Tricon also operates a 126 home build to rent community there, with rents of $2,229 to $2,769 a month reported in April 2025, so you'd be competing with an institutional landlord.

HOA Rental Restrictions and Short Term Rentals

Read the deed restrictions before you write the offer, not after. In Texas, an HOA's declaration controls whether you can lease and how. Things to look for:

• Minimum lease terms. Many declarations require leases of 30 days or more, or longer. Texas HOA attorneys describe an amendment setting a minimum lease term as the strongest tool an association has against transient rentals.
• Leasing caps or waiting periods. Some newer communities limit how many homes can be leased or require you to own for a period first.
• Tenant registration and fees. Some associations want lease copies and tenant contact info, and some charge for it.
• Townhome and condo rules. These are often stricter than single family rules because owners share walls and common areas.

For short term rentals, McKinney adopted a registration program in March 2026. The council approved it on a 4 to 2 vote. Every short term rental inside city limits, defined as rentals of 30 days or less, must register each year, registration is free, and the owner must name a contact available 24 hours a day. Operating without registering is a Class C misdemeanor. City officials estimated about 486 short term rentals in and around McKinney. The city is clear that registration doesn't override HOA or deed restrictions.

How PIDs and MUDs Change Your Return

A PID or MUD isn't automatically a deal breaker. It's a cost, and the price should reflect it. Here's how I think about each:

• PID: a fixed assessment per lot that repays bonds for the neighborhood's infrastructure. It has an end date, and in Texas you can usually prepay it. A $4,000 annual PID on a $2,400 rent is about 14% of gross rent.
• MUD: a separate taxing district, billed as a rate per $100 of value, with no fixed end date. As values rise, so does the bill.

Sellers have to give buyers a PID notice before the contract is binding, and MUD notices are required too. I go deeper on rates, examples, and how to look them up in McKinney property taxes, PIDs, and MUDs explained.

One break for investors: Texas temporarily caps appraisal increases at 20% a year for non homestead property valued at about $5 million or less, for tax years 2024 through 2026. It's smaller than the 10% cap a homesteaded owner gets, and it's set to end after 2026 unless the legislature extends it.

Are Townhomes a Good Investment in McKinney?

They can be, if the HOA dues are reasonable and leasing is allowed. You get a lower entry price and less exterior work, but dues can be high and resale demand is thinner. In McKinney, the 2026 options I'd look at include the new Westridge Townhomes from about $404K in Prosper ISD, Hemmingway at Craig Ranch around $330K to $370K, and a 2024 townhome in Trinity Falls that listed at $299K. Browse current listings on my townhomes search.

Frequently Asked Questions

Is McKinney a good place to buy a rental property?

For appreciation and tenant quality, yes. For monthly cash flow, usually not in 2026. My example cap rates ran about 2.6% to 3.1% before financing.

What is the property tax rate on a McKinney rental?

Inside the City of McKinney and McKinney ISD, it's about 1.71% for 2026 with no homestead exemption. Lowry Crossing addresses run lower, Princeton addresses run higher, and PIDs or MUDs are added on top.

Can I Airbnb my house in McKinney?

The city allows short term rentals if you register each year for free. Your HOA or deed restrictions can still ban them or require longer leases, so check those first.

Do PIDs go away?

PID bond assessments have a set term. In Simpson Crossing, the final installments are scheduled for 2053 to 2055. You can often prepay the balance.

What rent can I expect for a 3 bedroom house?

Rentometer showed a McKinney median of $2,300 a month for a 3 bedroom house as of January 2026. Specific neighborhoods run above or below that.

Is new construction or resale better for a rental?

New construction means fewer repairs and warranties, but often a PID and more competing rentals during build out. Resale in established areas usually has no PID and a more predictable tenant base, with older systems to budget for.

Does a McKinney address mean McKinney ISD?

No. Craig Ranch is mostly Frisco ISD with an Allen ISD east side, Westridge splits between Frisco ISD and Prosper ISD, and some east side addresses are in other cities. Check the address on Collin CAD and the district's locator. My schools page is a good starting point.

Talk to Me Before You Buy

I'm a REALTOR and a mortgage loan officer, so I can pull the rent comps, check the PID or MUD, and run the financed numbers on the same property in one conversation. If you're looking at a McKinney rental, send me the address or the area through the contact form on this site, and I'll get back to you with real numbers. You can also browse McKinney homes for sale or compare areas in my best neighborhoods in McKinney guide.

Sources: PJ Zaji NTREIS MLS data, closed sales for 12 months ending Oct. 28, 2026; Collin County Tax Assessor, 2026 Tax Rates and Exemptions by Jurisdiction; McKinney ISD 2026 election financial information; Redfin McKinney housing market (August 2026); Rentometer McKinney rents (January 2026); Homes.com Westridge local guide; Simpson Road PID 2026 Service and Assessment Plan update; City of Princeton Eastridge IA 4 PID presentation; Dallas Express on the Craig Ranch enhancement fee; D.R. Horton Westridge Townhomes; Collin College campuses; Visit McKinney, McKinney National Airport; Community Impact on TUPPS Brewery; City of McKinney short term rentals; Community Impact on the STR registration program; FirstService Residential on HOA leasing restrictions; Texas Real Estate Research Center on PID notices; Ownwell on Texas appraisal caps; Dallas Express on Tricon Trinity Falls; Torelli Properties on McKinney MUD 1 rates; City of McKinney Historic Neighborhood Improvement Zone guide.