Question 1

How does Fort Bliss's housing allowance change the way I should underwrite rent here?

Accepted Answer

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.

Question 2

What does El Paso County property tax actually cost a non-homestead DSCR investor?

Accepted Answer

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.

Question 3

Why might a newer-looking El Paso rental actually carry a worse tax bill?

Accepted Answer

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 most expensive to hold. Check the overlay list on the appraisal district account before you underwrite carry on a specific address.

Question 4

How should I model tenant turnover on an El Paso rental near Fort Bliss?

Accepted Answer

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.

Question 5

Which El Paso-area submarket pencils best on gross yield for a DSCR hold?

Accepted Answer

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 cheapest 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.

Question 6

Does the El Paso short-term rental tax change affect a DSCR rental underwrite?

Accepted Answer

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.

Question 7

What is a DSCR loan, and how do I qualify without tax returns?

Accepted Answer

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Question 8

What rate and terms can I get on a rental loan?

Accepted Answer

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

Question 9

How much can I borrow, and what is the maximum LTV?

Accepted Answer

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

Question 10

What credit score do I need for a DSCR loan?

Accepted Answer

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Question 11

Can I get a DSCR loan on a short-term rental (Airbnb)?

Accepted Answer

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Question 12

Is there a prepayment penalty?

Accepted Answer

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.

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