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Regardless, a good rule of thumb is to calculate the size of the tank based on the square footage of the home. A home that is 2,500 square feet in size will usually require a 500-gallon tank, while a home that is 5,000 square feet in size will require a 1,000-gallon tank.A 500-gallon tank is usually the best option for homes using propane for heat and powering appliances. If your home exceeds 3,500 square feet, you should consider buying two 500-gallon containers or installing a larger underground propane tank.