Methods and apparatus of resource allocation (RA) for low cost machine communication type (LC-MTC) user equipments (UEs) are provided. A UE obtains one or multiple sets of resources in a mobile communication network. Each set of resources belongs to a narrow sub-band in a wider channel bandwidth, wherein the narrow sub-band comprises a plurality of contiguous physical resource blocks (PRBs). The UE determines a first set of resources from the one or multiple sets of resources based on a physical layer control signaling and transmits or receives radio signals using the first set of resources within a predefined duration. In a coverage extension mode, the UE determines a second set of resources according to a hopping pattern, while the first and the second sets of resources are occupied for transmission at different radio subframes. The UE then transmits or receives radio signals using the second set of resources.