In this paper, we analyze the M-WiMAX UL capacity limits under 2-Tier cell layout, considering the effects of random user position, path loss models, fading channel and adjacent channel interference from WCDMA system. In order to make the analysis approximate to the practical system capacity, we propose a MCS-based capacity analysis method considering the effects of PER requirement and the utilized MCS levels in M-WiMAX system. The proposed MCS-based method is validated through a system-level Monte Carlo simulation. Furthermore, a comparison between the conventional Shannon method and the proposed MCS-based method is presented and the optimum cell radius is suggested.