Jack Ruby said:
Arlen is obviously a composite of several typical texas suburbs. I think the consensus from hard-core KOTH fans is that it mostly resembles Garland/Richardson and Temple/Belton. I know Judge lived in the Canyon Creek neighborhood of Richardson right before he hit it big with Beavis and Butthead. He was also giving an interview on the ticket (dallas sports radio) several years back where he said he drew the inspiration for Hank's character after an encounter with a neighbor of his in Richardson.
My neighbors in Richardson definitely have homes very close in design to Hanks. Though his alley way is way wider than mine and paved