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Program 02
Rental / DSCR in El Paso
El Paso rentals, financed with DSCR loans on their income.
Hold your rentals with financing that underwrites the property first. DSCR as low as 0.75, rates from 5.5% interest-only, and 30-year fixed options for single properties or whole portfolios. El Paso rents track the Fort Bliss housing allowance, which is published a year ahead. Business-purpose only, and rates and structure are set in underwriting.
0.75
min DSCR
5.5%
rates from
30-yr
fixed avail.
80%
max LTV
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
Who it's for
Buy-and-hold investors
Single rentals and portfolios
Short-term rentals considered
Rate/term and cash-out refi
Typical terms
Loan amount$100K to $3M
Max leverageUp to 80% LTV
DSCRFrom 0.75
CreditFrom 640
Term30-yr fixed / 5-7-10 ARM
RateFrom 5.50% IO*
PrepayFlexible structures
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Rental / DSCR in El Paso, answered.
How does Fort Bliss's housing allowance change the way I should underwrite rent here?
It gives you a published ceiling instead of a guess. The 2026 basic allowance for housing at the El Paso / Fort Bliss military housing area runs from about $1,665 with dependents for E-1 to E-4 up to $2,202 for an O-3 with dependents, up 7% from 2025. Zillow put the metro single-family rent at $1,772 in June 2026, which an E-5 household ($1,809 with dependents) covers with about $37 a month to spare, and an E-6 ($2,148) clears by roughly 21%. That is a tenant housing budget set by the federal government and published a year in advance, which supports collections, but it also caps them: price a 3-bedroom above roughly $2,150 and you are fishing above the entire enlisted band for a much smaller pool of officers. Run your own numbers with the DSCR calculator before you lock a rent assumption.
Sources: fortblisshousing.com, vetcalc.org, files.zillowstatic.com
What does El Paso County property tax actually cost a non-homestead DSCR investor?
Roughly 2.64% of assessed value a year inside the City of El Paso, with no homestead relief because you do not live in it. The Texas Comptroller's 2025 rates work out to about 2.643693 per $100 of value on a City of El Paso, El Paso ISD parcel: county 0.458889, R. E. Thomason hospital district 0.240892, community college 0.103563, city 0.759649, and El Paso ISD 1.080700. On the June 2026 city mid-tier value of $237,834 that is about $6,287 a year, or $524 a month, roughly 34% of the $1,521 city-level gross rent. That is materially higher than the roughly 2.0% stack investors see in Killeen, so underwrite this line before anything else. Talk to your CPA about how it lands on your own return.
Sources: comptroller.texas.gov
Why might a newer-looking El Paso rental actually carry a worse tax bill?
Because the far east side's new-build inventory sits inside a municipal utility district (MUD) layered on top of the base tax stack. The Paseo del Este MUDs run 0.6237 to 0.8018 per $100, and Horizon Regional MUD adds 0.6628, on top of county, hospital district, college, city, and ISD. A City of El Paso parcel in Socorro ISD plus Paseo del Este MUD #4, for example, works out to about 3.303693 per $100, well above the roughly 2.64 you would pay without the overlay. Newer, more attractive-looking product on the far east side is often the highest-cost to hold. Check the overlay list on the appraisal district account before you underwrite carry on a specific address.
Sources: comptroller.texas.gov
How should I model tenant turnover on an El Paso rental near Fort Bliss?
As a structural feature of a military-tenant lease, not a surprise vacancy. Under the federal Servicemembers Civil Relief Act (50 U.S.C. section 3955), a tenant with PCS orders or deployment orders of 90 days or more can terminate a residential lease with written notice and a copy of orders; on a month-to-month lease the termination takes effect 30 days after the next rent due date, with no early-termination fee. Fort Bliss carries 30,288 active-duty soldiers who rotate under PCS orders, alongside 185,499 military retirees who do not. Budget the turn on an active-duty tenant file the way you would in any base town, and treat the large retiree population as a separate, more stable segment of the rental pool.
Sources: comptroller.texas.gov, law.cornell.edu
Which El Paso-area submarket pencils best on gross yield for a DSCR hold?
The far east and lower valley submarkets run a point or two higher than the city itself, but the tax stack varies by ISD and MUD overlay. As of June 2026, El Paso city rent of $1,521 against a $237,834 mid-tier value works out to about 7.7% gross yield; Socorro's $1,443 rent against $209,855 in value runs about 8.3%; Horizon City's $1,643 rent against $223,115 runs about 8.8%. Socorro ISD, at 0.9389 per $100, is the county's lowest-cost large school district rate, which helps the Socorro-area number further. None of this is a cap rate: it is rent over value with no expenses, vacancy, or taxes netted out, so run your own operating numbers, and check whether the specific parcel sits inside a MUD before you commit.
Sources: files.zillowstatic.com
Does the El Paso short-term rental tax change affect a DSCR rental underwrite?
Only if you are underwriting nightly income, and even then the details are still unsettled. El Paso City Council voted on June 9, 2026 to begin collecting hotel occupancy tax on short-term rentals, with collections starting between 90 and 180 days after adoption, roughly between September and December 2026. The city estimates about $3.5 million a year in new collections, and about 81% of local listings are advertised through Airbnb. No permit requirement, cap, or specific tax rate for El Paso short-term rentals is confirmed as of this writing, so do not underwrite a nightly-income file against a rule that has not been finalized. A standard long-term DSCR lease is unaffected by any of this.
Sources: elpasotexas.gov
What do I put down on a $237,834 El Paso rental, tax line included?
20% at the most aggressive, because leverage runs up to 80% LTV. On the city mid-tier value of $237,834 that is about $190,267 from us and $47,567 from you (237,834 x 80% = 190,267), before closing costs. Leverage is set by the property, and DSCR starts at 0.75, so thinner coverage usually means less leverage rather than a decline. The tax line sits inside that math: about $524 a month on a City of El Paso parcel, roughly 34% of the $1,521 city rent. Subject to underwriting.
Sources: comptroller.texas.gov
Do Fabens and San Elizario doors clear your DSCR minimum loan size?
Yes, both do. The floor is $100,000 and the range runs to $3M. At up to 80% LTV, a Fabens door near the $167,675 mid-tier value finances to about $134,140 (167,675 x 80% = 134,140) and a San Elizario door near $181,064 to about $144,851 (181,064 x 80% = 144,851), both clear of the floor. Lower-value doors can fall under it. If one door is too small on its own, several together may fit a portfolio loan instead. Subject to underwriting.
Sources: files.zillowstatic.com
With tax at about 34% of El Paso rent, how low can the DSCR go?
Down to 0.75, which means the rent does not have to fully cover the payment for the file to work. That matters here because the tax line is heavy: roughly $524 a month on a City of El Paso parcel, about 34% of the $1,521 city rent, before insurance or vacancy. Coverage below 1.0 usually comes with lower leverage, and credit still counts on this program, which starts at a 640 score. Run rent, tax, and payment together on the DSCR calculator before you commit to a price. Subject to underwriting.
Sources: comptroller.texas.gov
More Rental / DSCR questions, answered on the program page
Resources
Guides for Rental / DSCR
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Strategy · 6 min read
Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Rates & Costs · 5 min read
Hard Money Loan Rates and Costs, Explained
Read the guide More in El Paso
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About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-13.
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