Updated 2026 · Based on median market data for Plano, TX
Plano sits in the South with a population of 289,710 growing rapidly at 1.6% annually. The median home costs $420,000 while rents average $1,900/mo, producing an estimated cap rate of 2.55%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
Plano works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 2.55% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.
Target properties priced 15-25% below the $420,000 median — around $336,000 or less. At this price point with $1,900/mo rents, your cap rate improves to roughly 3.8%. Factor in 1.82% property taxes ($7,644/yr), budget 5% of gross rent for maintenance, and underwrite to a 4.8% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $2,971.
Property taxes at 1.82% are notably high — this is a significant drag on NOI that some investors underestimate. Higher price points mean more capital at risk and tighter cash flow margins — ensure you have adequate reserves. Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Plano property using our cap rate calculator (pre-filled with Plano data). Compare Plano against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.