WiMAX (IEEE 802.16) has emerged as a promising radio access technology for providing high speed broadband connectivity to subscribers over large geographic regions. New enhancements allow deployments of relay stations (RSs) that can extend the coverage of the base station (BS), increase cell capacity, or both. In this paper, we consider the placement of transparent RSs that maximize the cell capacity. We provide a closed-form approximation for the optimal location of RS inside a cell. A numerical analysis of a number of case studies validates the closed-form approximation. The numerical results show that the closed-form approximation is reasonably accurate.