An easy-to-implement approach to allocate downlink data bursts in IEEE 802.16e (mobile WiMAX) frames is proposed. With the proposed allocation scheme, each mobile station can employ a decision-directed channel estimation method without demodulating data bursts destined for other stations. Three decision-directed channel estimation methods, each with different computational complexity, are suggested based on the proposed allocation method. Theoretical analysis and simulation results show that one of the suggested decision-directed methods, the adaptive weighted-average estimation, outperforms the widely used two-dimensional interpolation method for all considered channel models, especially for high-speed reception in a large-delay-spread channel. Therefore, the proposed allocation method together with the adaptive weighted-average estimation can be used to increase the successful transmission probability for data bursts requiring low error rates, such as hybrid automatic repeat request bursts.