Investment Property Loans in McKinney, TX

A March 3, 2026 McKinney ordinance requires yearly registration of each short-term rental unit (stays under 30 days) and a named responsible person, reachable 24 hours, who can answer complaints within an hour.

For investors: Because every dwelling unit registers on its own, a McKinney duplex rented by the night needs two filings, renewed every 12 months. An owner living out of town should name a local manager as the contact, since that person must be able to respond within an hour.

Source: McKinney Ordinance No. 2026-03-022 (Code Ch. 54, Art. VII, Short-Term Rental Registration), adopted March 3, 2026, on the city's municode ordinance bank, Mar 2026

McKinney's registration ordinance sets no fee, and each registrant must acknowledge that registering does not override any lease, covenant or deed restriction that bars short-term rentals at the property.

For investors: In McKinney's many HOA-governed subdivisions, the city filing is the easy step and the covenant check decides the deal. Pull the HOA declaration and any rental amendments during the option period before pricing a home on nightly income.

Source: McKinney Ordinance No. 2026-03-022, Code Sec. 54-271, adopted March 3, 2026 (no registration fee added by the 2026 fee schedule amendments), Mar 2026

McKinney levies a 7% city hotel occupancy tax that covers short-term rentals; a 2025 amendment makes booking platforms collect and remit it, but the owner stays liable if a platform fails to pay.

For investors: Platform collection covers only stays booked through that platform. Direct bookings and repeat guests who pay a McKinney host directly still need the host to collect the city's 7% and file it, alongside the separate state hotel tax.

Source: McKinney Ordinance No. 2025-09-073, amending Code Ch. 98 Art. IV, Hotel Occupancy Tax, adopted September 2, 2025, Sep 2025

McKinney hotel tax reports are due by the 20th of the following month; operators owing under $500 a month or $1,500 a quarter may ask to file quarterly, and keep 1% for collection costs.

For investors: A single McKinney rental that books mostly through platforms may owe little directly, so quarterly filing is worth requesting. Late payment costs 5%, another 5% after 30 days, and 10% yearly interest from day 60, and the city can take back the 1% allowance.

Source: McKinney Ordinance No. 2025-09-073, Code Sec. 98-116, 98-117 and 98-119 as amended, adopted September 2, 2025, Sep 2025

For tax year 2025, a McKinney home in McKinney ISD carried about $1.75 per $100: city $0.412284, Collin County $0.149343, McKinney ISD $1.1043 and Collin College $0.08122.

For investors: At that stack a $450,000 McKinney rental owes roughly $7,860 a year, with no homestead exemption to soften it. Parts of the city sit in other school districts, so confirm the parcel's ISD on the Collin Central Appraisal District record before underwriting.

Source: Texas Comptroller, 2025 City, County, ISD and Special District Rates and Levies, Jan 2026

McKinney's published tax year 2026 proposal was 42.2676 cents per $100, but the rate ordinance placed on the September 1, 2026 agenda would keep the city rate at 41.2284 cents, unchanged from 2025.

For investors: If the council adopted the ordinance as drafted, McKinney's line on a rental's bill moves only with the appraised value. The draft says it still raises more operations revenue than last year, so check the final rate on Collin County's tax rate site before underwriting.

Source: City of McKinney, tax year 2026 rate ordinance as placed on the September 1, 2026 agenda (council item 26-0845 on Legistar); proposed rate from the city's notice of public hearing on the Collin County truth-in-taxation site, Sep 2026

The Trinity Falls development is served by McKinney MUD No. 1 and No. 2, which levied $0.98475 and $1.05 per $100 for tax year 2025, mostly for debt.

For investors: District levies near $1 per $100 add roughly $4,430 to $4,725 a year on a $450,000 Trinity Falls rental, on top of every other levy on the bill. Because most of each levy repays bonds, expect it to stay high for years when comparing rents with older McKinney neighborhoods.

Source: Texas Comptroller, 2025 Special District Rates and Levies (Trinity Falls link per McKinney council items 23-0810 and 26-0210), Jan 2026

McKinney's Historic Neighborhood Improvement Zone gives 10-year city tax exemptions of 30%, 50% or 100% for qualifying rehab work, but only on owner-occupied homes holding a homestead exemption.

For investors: Buying a house inside McKinney's historic improvement zone to rent means any exemption it carries can be suspended once no owner lives there. Model the full city tax rather than the seller's discounted bill, and ask the seller which exemption level applies.

Source: McKinney Code of Ordinances, Ch. 98 Art. III, Sec. 98-84 (Historic Neighborhood Improvement Zone), Oct 2026

McKinney's 2025 financial report lists Raytheon Intelligence and Space (4,500 workers), McKinney ISD (3,689), Collin County (2,098), Medical City McKinney and Baylor Scott & White McKinney (1,500 each) among top employers.

For investors: Defense, county, school and hospital payrolls give McKinney a renter base that is not tied to one company. Two hospitals with round-the-clock shifts can support smaller rentals and townhomes within a short drive of the medical campuses.

Source: City of McKinney, FY2025 Annual Comprehensive Financial Report, Table 15 Principal Employers, Sep 2025

McKinney broke ground in July 2025 on a $79 million passenger terminal at McKinney National Airport with four gates and room for over 500,000 passengers a year, slated for completion in late 2026.

For investors: Scheduled flights would add airline, security and concession jobs plus traveler demand for furnished stays in McKinney. Until service actually starts, treat the terminal as upside rather than building it into the base rent case for a purchase.

Source: City of McKinney, FY2025 Annual Comprehensive Financial Report, letter of transmittal, Sep 2025

McKinney estimates its population at 237,416 as of January 1, 2026, up 22% from 195,308 in the 2020 census and 81% from 131,117 in 2010.

For investors: Growth this fast brings new rental supply along with demand, and the city says taxable values rose 174% since fiscal 2016. Compare a McKinney resale against nearby new builds before assuming rent or tax growth will keep pace.

Source: City of McKinney, FY2025 Annual Comprehensive Financial Report, local economy section, Jan 2026