Short answer: In Plano, TX, the median home value is $541,700 and the median 3-bedroom rents for $2,366/mo (Census ACS 2024). That's a rent-to-price ratio of 0.44%, so it misses the 1% rule and would place #33 among the 50 largest US rental markets (Plano is the #81 US city by renter households). With 20% down at 7.32%, FirstDoor scores a median-priced home Pass (−$1,779/mo cash flow).
Key numbers
The 1% rule in Plano
Before running a full analysis, many investors check whether rent is at least 1% of price. This is where Plano lands.
Across all rentals (not just 3-bedrooms) the ratio is 0.35%. A home renting for the median 3-bedroom rent would need to cost about $237,000 or less to pass.
A typical Plano home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.32%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,366 |
| Property tax ($6,191/yr, local median) | −$516 |
| Insurance ($2,710/yr, assumed) | −$226 |
| Vacancy 5% · Maintenance 5% · Management 8% | −$426 |
| Net operating income | $1,198 |
| Mortgage (P&I on $433,360 at 7.32%) | −$2,977 |
| Monthly cash flow | −$1,779 |
What price works in Plano?
Same rent, different prices. Here's the most you could pay in Plano for each result, keeping the median 3-bedroom rent and local tax rate.
Takeaways
- Plano's 0.44% ratio is far below the 1% rule (it would place #33 among the 50 largest). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $1,779/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $283,000, 48% below the median.
- Prices are outrunning rents: home values rose 14.6% from 2023 to 2024 while 3-bedroom rent rose 0.1%. The 1% math got tougher.
Frequently asked questions
Does Plano pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,366/mo and the median home value is $541,700 (Census ACS 2024 1-year), a ratio of 0.44%. To pass at that rent, a home would need to cost about $237,000 or less.
What is the typical rent for a 3-bedroom in Plano?
The median gross rent for a 3-bedroom in Plano, TX is $2,366 a month, and $1,904 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 0.1% from 2023.
Can you cash flow a rental in Plano?
At the median price, not easily. With 20% down at 7.32% and realistic expenses, a $541,700 home renting for $2,366 loses about $1,779/mo. It breaks even at roughly $283,000.
How much cash do you need to buy a typical rental in Plano?
About $124,640: a 20% down payment of $108,340 plus closing costs we assume at 3% ($16,300). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Plano a good place to buy a first rental?
FirstDoor scores a median-priced home in Plano as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 22, 2026. Retrieved October 15, 2026. Insurance ($2,710/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.