Rents, rental rules and the real numbers for McKinney, Frisco, Prosper, Celina and Plano
Melissa Avara is a McKinney-based Texas real estate broker who helps investors buy, lease and sell rental property in McKinney, Frisco, Prosper, Celina, Plano and the surrounding North DFW suburbs. She also represents landlords and tenants on leases. This guide covers rents, short-term rental rules, taxes and how to run the numbers in 2026.
North DFW is a solid long-term rental market with steady demand and fast leasing, but thin cash flow at today's prices. Collin County single-family rentals leased in about 39 days in August 2026. Most investors here buy for appreciation and stable tenants, not high yield.
Population growth keeps demand steady. Celina was the fastest-growing U.S. city of its size from 2024 to 2025, and McKinney and Frisco each added roughly 20% or more since 2020. Rents, though, have flattened. Collin County's median single-family rent was $2,500 in August 2026, unchanged from a year earlier.
Median single-family rents in August 2026 were about $2,395 in McKinney, $2,800 in Plano, $3,100 in Frisco and $3,698 in Prosper, based on NTREIS MLS lease data. Celina had too few leases that month for a reliable median. Rents track home size and school district closely.
Those are medians for homes that actually leased, so a specific property can land well above or below them. Melissa pulls lease comps for the exact neighborhood before you buy.
Frisco and McKinney allow short-term rentals with a city registration. Plano has barred new short-term rentals in residential neighborhoods since 2024. Prosper prohibits short-term rentals of single-family homes. We found no Celina short-term rental ordinance as of October 2026, but every rental must be registered.
City rules are only half the picture. Many HOAs restrict leasing or ban stays under 30 days, so Melissa checks the deed restrictions before you write an offer.
A rental does not get the homestead exemption, so you pay the full combined rate, about 1.7% to 2% of taxable value in these cities, plus any MUD or PID. That makes property tax the biggest cost after the mortgage.
Rentals valued under about $5 million get a 20% annual cap on appraisal increases, but that rule expires December 31, 2026 unless the Legislature extends it. On a $490,000 McKinney rental, property tax alone runs about $8,300 to $8,600 a year, so build it into every offer.
Start with gross yield: annual rent divided by price. A McKinney home at the $490,000 median renting at the $2,395 median grosses about 5.9%. Then subtract property tax, insurance, HOA dues, repairs, vacancy and management. Many North DFW rentals cash flow modestly at best with today's rates.
At the medians, Plano grosses about 6.6%, Frisco about 5.5% and Prosper about 5.3%. Older homes in East Plano and east McKinney usually pencil out better than newer homes in Prosper or Frisco, but they need more repairs. Texas has no rent control, which gives landlords room to adjust rents with the market.
Yes. A 1031 exchange lets you defer capital gains tax when you sell investment real estate and buy more. You must identify the replacement property in writing within 45 days of selling and close within 180 days or by your tax return due date, if earlier. Use a qualified intermediary.
Melissa coordinates with your intermediary so the search fits the 45-day window.
Look where the price-to-rent math works and the rules allow your plan. East McKinney near the downtown redevelopment, East and Central Plano's 1970s to 1990s homes, and new construction with builder incentives in McKinney and Celina are common starting points. Avoid Prosper for short-term rentals.
Build-to-rent communities, like Tricon's 126 rental homes at Trinity Falls in McKinney, show where institutional investors are betting on long-term demand.
Melissa finds properties, pulls rent and sale comps, checks city and HOA rental rules, and negotiates the purchase. After closing, she can lease the home and help you find a property manager. When you sell, she can line up your next purchase for a 1031 exchange.
Talk through a deal with Melissa: call or text (214) 280-4317 or send her a message. Related: McKinney, Plano, Celina, How to buy your first rental property in North DFW, Buying and selling in North DFW.
Last updated October 2026. Data: NTREIS Monthly MLS Summary, August 2026 (Texas Real Estate Research Center); City of McKinney STR registration (Ord. 2026-03-022); City of Frisco STR permit (Ord. 2021-08-52); City of Plano STR registration (Ord. 2024-4-14, amended July 2026); Town of Prosper Code Sec. 4.11.002; City of Celina rental registration; Texas Tax Code 23.231; Texas Local Government Code 214.902; IRS Instructions for Form 8824.